After failing at the ATH, the SPX registered two consecutive 3-day identical bearish patterns:
A projection of this pattern identifies the key support/resistance levels for next week: 4450 & 4600.
A break below 4450 could lead to a panic sell to 4300. A break above 4600 opens the door for a retest of the ATH.
Weekly market breadth has been steadily declining and has entered oversold territory:
suggesting that a strong rebound should follow.
Peak momentum readings at the beginning of the month were followed by a quick sell-off, and the SPX spent the last two weeks trading in a box. Strong seasonality suggests giving bulls the benefit of the doubt:
Support at 4630 and 4680; resistance at 4720.
Upside/downside targets at 4750 and 4630.
(Data, signals and targets courtesy of OddsTrader, Gann 9 and OT Seasonal)
Strong seasonality helped keep the SPX above the bullish angle, and propelled it to new highs:
In addition, despite strong momentum, leadership is narrowing.
