Black line- resistance trend line (broken)
Red lines- Fibonacci extension targets
SPX is trading around 4,119. Short-term trend remains bullish after the 3,800 area bottom. In a previous analysis we mentioned that current price pattern suggests that SPX is heading towards 4,250 and this target remains our primary focus. On a daily basis the RSI has still not reached overbought levels. Price continues making higher highs and higher lows. The previous highs at 4,195 are the next resistance level bulls need to break. A double top rejection at 4,195 would be a bearish sign. As we approach this resistance level bulls need to be cautious.
