Its neutral from yesterday, but main trend is up, expect a good size pullback to buy
Looking at recent history there is a chance we gap down tomorrow and continue lower. But Im not in that camp and I do expect a move lower and then reverse to fill the 2 gaps at 4089 and 4123SPX with a move all the way up to 4150-70 before any significant pullback.
I do also expect the broken downtrend channel to be tested on a retrace and that test can be quite deep, all the way to 3885-95SPX, which will produce a huge buying opportunity for higher levels to be seen.
Also important to watch the 50MA on the 4h chart as its right where all the previous rallies stopped, yesterday we have touched it and retraced.
Buy zone for tomorrow
- 3960-80SPX
- 3922-45SPX expect it to hold and press higher
- 3885-90 is the main buy zone
- 3850 and 34 must hold on any try or it falls apart (main support, not expected to get hit any time soon)
Short
- 4034-56SPX (stopped in that zone on daily close)
- 4090-25 is the next resistance zone
- 4158-70SPX and 4215-25, no short above 4225, next target is 4300
Looking at recent history there is a chance we gap down tomorrow and continue lower. But Im not in that camp and I do expect a move lower and then reverse to fill the 2 gaps at 4089 and 4123SPX with a move all the way up to 4150-70 before any significant pullback.
I do also expect the broken downtrend channel to be tested on a retrace and that test can be quite deep, all the way to 3885-95SPX, which will produce a huge buying opportunity for higher levels to be seen.
Also important to watch the 50MA on the 4h chart as its right where all the previous rallies stopped, yesterday we have touched it and retraced.
Buy zone for tomorrow
- 3960-80SPX
- 3922-45SPX expect it to hold and press higher
- 3885-90 is the main buy zone
- 3850 and 34 must hold on any try or it falls apart (main support, not expected to get hit any time soon)
Short
- 4034-56SPX (stopped in that zone on daily close)
- 4090-25 is the next resistance zone
- 4158-70SPX and 4215-25, no short above 4225, next target is 4300