Good morning. SPX is getting support from the fan line from the early September lows (our yellow channel.)
I’m looking for a bounce to flesh out the channel — probably to 1464.50 or so.
UPDATE: 10:00 AM
We’re bumping up against a line in our big, red channel at 1463.1, so that could be the extent of this push.
I’m charting a new, broader channel in red. It’s speculative at this point, but it corresponds with a 1.618 extension of yesterday’s high to its low.
The 15-min RSI has hit resistance, but SPX could eek out a couple points higher on negative divergence.
More in a few minutes, including an update on the longer-term picture and posts on RUT and CL.
continued…
UPDATE: 10:40 AM
More of the same. Fine tuning the channel… still looking for a max of 1464.50 or so. The thin red channel line up has held back several attempts, but so has the yellow channel line within it.
More in a few.
UPDATE: 11:25 AM
SPX is approaching the 1.618 Fib we discussed earlier. For traders playing the bounce as we discussed yesterday, this move is likely just about over — though stops are always a good idea.
For those with a slightly longer-term horizon, this is the level at which stops might come into play. It represents a 50% retrace of the drop from the recent highs, and prices higher than 1464.50 would require another redraw of the presumed channel down.
More in a few.