Blue line- major resistance trend line
Green lines- Fibonacci retracement levels
After 4 negative trading sessions SPX is bouncing higher. Price recently made a low at 3,785 after getting rejected at the important resistance trend line at 4,060. As we mentioned in a previous analysis, there are increased chances of a bounce towards 4,020. Minimum bounce target is the 38% Fibonacci retracement of the recent decline at 3,920. Next upside target is the 61.8% retracement at 4,000-4,020. As long as price is above the recent lows, we expect the bounce higher to continue.
