Blue line -resistance trend line
SPX is at a very crucial junction. Price has risen from 3,490 to 4,100 where price hit the downward sloping resistance trend line. Price initially got rejected and broke below the latest higher low at 3,933. Price back tested the trend line resistance yesterday. Briefly price moved above it but bulls were unable to hold their ground. The daily candlestick is bearish. This long upper tail is a sign of weakness. If that bearish candlestick pattern is followed by a black candle, then we should expect more weakness to follow over the coming days. Bulls need to recapture 4,090 and stay above it in order to hope for a bigger bounce higher. Otherwise we should prepare for another downward move similar to what followed the previous rejections at the trend line.
