On our latest analysis on SPX we mentioned the importance of 2445 support….price reached that area and bounced strong back up towards 2470…price has now made a lower highs and has produced yesterday a new short-term sell signal….the levels to watch now are at 2445 and at 2420.
I believe that a break below 2445 will open wide the road to 2400-2390 as it will be most certain that the 2420 low will be broken. However if bulls manage to hold above support then we should expect a reversal back towards 2470 which will need to be broken for 2520 to be achieved. I personally favor the bearish scenario for a pull back towards 2360.
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