Blue line- resistance
Green lines- Fibonacci retracements
SPX is trading around 4000-4020. In our previous analysis we warned bulls that price was very close to a key trend line resistance that so far has provided two rejections and trend reversals. Technically trend remains bullish in the short-term as price has not broken below the latest higher low at 3,937. As long as price is above this level, short-term trend will remain bullish. The RSI has not reached yet overbought levels, so there is still room to the upside. But the blue trend line at 4,100 is a very important resistance. So far we see price getting rejected at the resistance trend line. Traders need to be patient and bulls extra cautious.
