Rally On The Cards Today

I posted a slightly earlier version of the chart below on twitter yesterday afternoon talking about the falling megaphone from the H&S right shoulder high. SPX dribbled down for the rest of the day SPX but as long as megaphone support holds this morning the next obvious target is at megaphone resistance, currently at 2072 and falling at about 11 points per day.  5min chart:

There is very strong support not far below now at rising (wedge) support from the October low. I have that in the 2037 area and ideally that shouldn't be tested yet. If it is tested then it's important for further upside that it holds, as a break below not only opens up lower targets but also eliminates wedge resistance as a target. SPX daily chart:

Worth mentioning again today is weekly middle band support in the 2055 area. That is strong support and to hold it SPX needs to close Friday at or over that level. A break below on Friday's close opens up the weekly lower band as a target in the 2000 area. SPX weekly chart:

The SPX lower band closed at 2057 yesterday and as the middle band isn't yet pointing down I'd expect that to close no lower than 2050 today. At the minimum we should see a test of that from below today though unless we see a break of rising wedge support I'm expecting a rally to test falling megaphone support, target to be hit today or tomorrow. At that test SPX will have a chance to break up.