Precise trendline on $SPX weekly
Certainly this trendline has made the rounds. It is posted repeatedly on trading sites. Here I have used the actual candle highs (yellow arrows) to draw a precise resistance line.
Candle on 12 Dec pierced the line but met 50sma resistance. RSI is over 50 but lacks stochastic support; thus it could be a double-top 50 test. Price is also just under Ichimoku cloud (not shown here).
If RSI leads the way higher, price will quickly reach 4110, and probably also the gap fill at 4218. Downward, there is a gap to 3920.
There will be plenty of trade opportunities in either direction. Be patient and control risk until the next big direction is more clear. I think a pullback is due in the near term, and beyond that I am waiting for the charts to lead the way.
Candle on 12 Dec pierced the line but met 50sma resistance. RSI is over 50 but lacks stochastic support; thus it could be a double-top 50 test. Price is also just under Ichimoku cloud (not shown here).
If RSI leads the way higher, price will quickly reach 4110, and probably also the gap fill at 4218. Downward, there is a gap to 3920.
There will be plenty of trade opportunities in either direction. Be patient and control risk until the next big direction is more clear. I think a pullback is due in the near term, and beyond that I am waiting for the charts to lead the way.
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