SPX rally runs out of steam, breaks trend support. (SPX Hourly)
SPX fails to break past it's RSI resistance, resulting in a phase change before it could re-test trend resistance. It promptly broke .5 FIB from the bottom and it's trend support (now resistance) but caught itself on what is now a very critical level.
2730-2750 is going to be a highly contested range by bulls, as it contains both the 2018 lows and the .2 FIB from the 2009 lows. These supports are, as I type this, providing a bounce point for the drop today, and I anticipate a trip back to the trend resistance just created (with RSI and the Bollinger bands supporting). The question then becomes, will the gravity of fundamentals (oil, earnings, etc.) and the pull of unfilled gaps bring us immediately through that 2730ish level, or will this rally continue?
I got net short approaching and at that RSI level, and have covered some, but not all around the 2740 mark. I'll stop out if we break back through that resistance this week, but I'm otherwise targeting 2550 and that wide open gap below.
2730-2750 is going to be a highly contested range by bulls, as it contains both the 2018 lows and the .2 FIB from the 2009 lows. These supports are, as I type this, providing a bounce point for the drop today, and I anticipate a trip back to the trend resistance just created (with RSI and the Bollinger bands supporting). The question then becomes, will the gravity of fundamentals (oil, earnings, etc.) and the pull of unfilled gaps bring us immediately through that 2730ish level, or will this rally continue?
I got net short approaching and at that RSI level, and have covered some, but not all around the 2740 mark. I'll stop out if we break back through that resistance this week, but I'm otherwise targeting 2550 and that wide open gap below.
