Blue line- resistance
Green line- support
SPX is trading around the 4,000 price level. Recent price action was bearish as price got rejected at the major trend line resistance coming from 4,817. Short-term support remains respected as price has not broken the higher highs and higher lows sequence. SPX recently got rejected at the 4,100 resistance area and is now testing the upward sloping support trend line. It would be a sign of weakness if price were to break below the trend line. The most recent higher low at 3,937 if broken will provide a reversal signal. If bulls manage to defend this area, then we could see SPX spike higher towards 4,200.
