- Rejection of strong counter-trendline (orange line) - Last night, tested the previous Head-and-Shoulder's (blue line) Neckline (red line)
If Index rebounds from here (and there's favourable news from the FOMC meeting on 15 Dec), we will likely see a break of the strong counter-trendline (blue arrow). I would be bullish for the mid-term.
If the current support breaks (red line), we might see the Index falling towards 3700-3800 levels again (red arrow).