The SPX has been a bit range bound between 2660 and 2780 for a couple of weeks. We've developed a clear up channel inside of what's still technically a down move, from the Jan highs.
It's still not clear if the market will recover and resume the previous uptrend or roll back over. In the current channel, we are close to an inflection point. Breaking below the channel support of roughly 2717 would indicate a rollerover and continuation of the down move started in late Jan. Taking out the 3/19 low of 2697 would indicate a confirmation and move toward roughly 2490.
Also, roughly 2400 is the support side of a long-term up channel that has developed in the SPX, dating back to October 2008.
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Bull scenario: the support of the developing channel holds around 2700. SPX price should then work it's way back to the upper side of the channel, to around 2860. A close above roughly 2790 would confirm this move.
Until then, we are still range bound.
It's still not clear if the market will recover and resume the previous uptrend or roll back over. In the current channel, we are close to an inflection point. Breaking below the channel support of roughly 2717 would indicate a rollerover and continuation of the down move started in late Jan. Taking out the 3/19 low of 2697 would indicate a confirmation and move toward roughly 2490.
Also, roughly 2400 is the support side of a long-term up channel that has developed in the SPX, dating back to October 2008.
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Bull scenario: the support of the developing channel holds around 2700. SPX price should then work it's way back to the upper side of the channel, to around 2860. A close above roughly 2790 would confirm this move.
Until then, we are still range bound.