Black line - resistance trend line
Red lines- Fibonacci extension targets
As we mentioned in our previous posts on SPX, price behavior supported the bullish scenario for a move towards 4,250. Despite the initial rejection at 4,177 and the pull back towards 4,051, bulls are back pushing price to new short-term higher highs. Our Fibonacci extension target of 4,250 remains valid as price continues making higher highs and higher lows. The recent pull back at 4,050 formed a higher low and did unfold to a bigger reversal. Support at 4,050 is key for the near term trend. As long as price holds above this level bulls will remain in control of the trend.
