SPX 500 Bullish On Pullback Setup

FX:SPX500   S&P 500 Index
After flirting with the 1800 barrier for a few hours, the index sold off about 14 points. However, since then, the selling has been muted and the follow through weak ATM. If the index continues to balance and re-distribute today without much follow through, then the bears will probably let go of their positions while the bulls will smell weakness and go for another attack on the all time highs.

Until I see aggressive selling, I'll look for a buy signal in the support zone shown in the chart. I think this is the key area for bulls to defend, and where they will likely get in. If this folds, then 1756 is likely up next and we could see more unwinding. But if this area holds, then another attack on the all time highs should be on deck where any sellers will be put to the test again.


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