Yesterday’s SPX action hit our upside target (1963) and subsequent downside target (1945), with SPX essentially continuing in a pre-Fed/BoJ triangle.   Today, we should see that triangle break down.

continued for members…

The futures are pointing to a decline today, with CL and USDJPY both showing weakness.

SPX should at least retest the rising purple channel bottom (1946ish) and, if it breaks, the white .786 at 1927.80.  If it turns into more of a rout as we discussed yesterday, then the red .786 and .886 start to look interesting — and the white .886 at 1856 is still a wildcard option.My favorite target as of this moment is 1900, as seen here on ES. As I’ve mentioned a lot lately, I think one key to this puzzle is NKD — which is still looking like it wants to test 17,000. UPDATE:  12:04PM

SPX has pushed back into the channel and is only a couple of points away from the SMA10 at 1954.75… …on a sudden burst in both USDJPY and CL.  Any sustained push through the SMA10 would be cause to abandon the current scenario.