SPX tagged our target at the white .886 yesterday and rebounded sharply. As discussed, though, the grey Fib charts remain a downside factor. The .786 at 1798 is our next downside target, with the grey .886 as the secondary.
But, with several Fed Prez speaking today, don’t be surprised if the jawboning furthers yesterday’s bounce.
UPDATE: 11:45 AM
Stocks got a nice bounce thanks to talks of QE4 by . But, they’ll have trouble keeping the bounce going without USDJPY, which has backtested and is currently stuck below its SMA50. Note that it’s still north of the grey channel midline, though. So, we have to treat that as support for now.
Note that the gray channel dates back to late 2010, so this might serve as a significant line in the sand.