Monday, December 21, 2020

SPX Update: Resistance Strikes Again

Well, bears managed to defend intermediate resistance yet again, as on Sunday night/Monday morning, ES (e-mini S&P futures) dropped down toward 3600.  At one point, ES was waterfalling, but it found support a few hours before the cash open, and has since bounced nearly 60 points (and could, of course, be more by the time this is published).  Not coincidentally, ES found support in the C1 zone discussed last update as the first target in the event of a rejection at intermediate-term resistance:

Near-term, the chart is still a complete mess.  

In conclusion, SPX was again rejected at intermediate resistance, but bears will still have to get through near-term support to get the tide turning more significantly in their direction.  On the bull side, one might suspect that if the market recovers back to intermediate resistance again, then it might finally get over.  There are still multiple options on the table, so we'll see how it goes from here.  Trade safe.

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