• Last Friday we nailed the bottom on the index, and it went up nicely afterwards; • However, the SPX is back to our support level, and it all depends on how it’ll react from here; • By losing the 4,028, then we might see a sharper pullback, and the 21 ema in the daily chart would be a good target to work with; • If we react, then the bullish bias will persist, but for confirmation sake, would be important to see the index breaking the 21 ema in the 1h chart; • Unlike last time when we called a bottom, the SPX lost the ema in the 1h chart, and as evidenced by the purple line, it did a lower high, this makes the trend weaker; • However, keep in mind that in the daily chart the trend is still clearly bullish, and a pullback to the 21 ema wouldn’t ruin it at all; • The 4,028 is the key point here, and only by losing it we can work with a sharper pullback. For now, let’s wait for more info. I’ll keep you updated on this.
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The SPX broke our key support and it is dropping sharply now. Our next stop is the 21 ema, let's see if it gets there.