Yellow rectangle- resistance
Green line- support trend line
SPX is trading around 4,120. Technically trend remains bullish as price continues to respect the green upward sloping trend line, but over the last few weeks price has made no progress. Price is mostly moving sideways between 4,050 and 4,200. The RSI has a negative slope and has provided us with a couple of bearish divergence signals. Resistance at 4,200 is key and as long as we trade below this level, I expect SPX to pull back at least towards the green support trend line. In the near term trend is unclear. With price so close to key resistance levels, we prefer to be neutral or bearish. Downside potential is bigger. On the upside, if bulls manage to break above the 4,200 resistance level we should the expect price to move towards 4,450 at least.
