SP500 update

The SP is considered by many as the leading stocks index, it usually shows the way.

On a daily basis, we can see on the hat the falling wedge pattern. The confluence of the lower Bollinger band, the daily Vwap and the support trend line has stopped the fall of the index. We are now so far on a rebound configuration.

The first target of this rebound is clearly the resistance of the wedge, at 1335 points today, which also is the 38,2% Fibonacci retracement of the fall from the top at 1370.
I believe the the resistance should be at the zone 1339-1341, which is the confluence of the daily MA20, the 1º positive SD Vwap and the 50% Fibonacci retracement.

On the medium target, be aware of the bearish configuration of the index, shown by the negative divergence of the RSI(21), (points 1 and 2 on the figure). A pull back on the RSI's red trendline should be a good point for a short, targeting the SAR at 1239 currently (also level of the daily MA200 not shown on the figure).



Nice trades
Pj.