SPX short-term view

Good morning everyone!!! Spx is pulling back from important Fibonacci resistance area (between 50% and 61.8% retracements). Price is making higher highs and higher lows trading inside a bullish channel and I believe that for bears to regain control of the trend two conditions must apply. Price must not break  above the downward sloping red trend line resistance and price should eventually break below (and stay below) 2850. If this happens then most probably we will see another sell off towards 2700 or lower. Bulls on the other hand need to break above 2900 and hold above it.

The RSI has hit resistance trend line and marginally moved above it and is now back below resistance. As long as this indicator is below the red trend line we will eventually see another sell of that will break 2800 and push the index towards 2700. If this trend line is broken I believe that the up trend will resume towards 2900 and higher. This is my short-term update for now, I will be back when we have more data.

 

Have a great weekend everyone!