Yellow rectangle- resistance
Green upward sloping line- support trend line
Green horizontal lines- Fibonacci extension targets
After reaching our second Fibonacci extension target around 4,440-4,450, the SPX index is turning back wards. This pull back is justified by the RSI as it already reached overbought levels when price was making new highs. Price continues making higher highs and higher lows confirming the bullish short-term trend we are in. The yellow rectangle area was once resistance but now support. The green upward sloping trend line also remains a key support level. As long as both remain intact, bulls have the upper hand. This does not mean that we could not a see a pull back towards 4,300 and lower.
