SPX pulled back towards support on Friday, but no technical damage was done. The close was at 2110, and support below is at:
- 2106 - 50 day MA
- 2104 - Daily middle band
- 2102.5 - 5 day MA
- 2102 - 50 hour MA
- 2101 50 day EMA
If this raft of support levels can be broken then SPX may well be on the way back down again. Until then this was just a retracement to test support. SPX daily chart:
That said there is definitely an argument here for SPX going a bit lower this morning. There is a 5min buy signal on the chart now, but the obvious trendline target has not yet been hit. SPX 5min chart:
Unless we see a break of strong support not far below Friday's low then I'm still looking for a retest of the high before more downside.
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