Red lines- bullish channel
Blue line- support trend line
Green lines- Fibonacci extension targets
SPX is trading around 4,435. In our previous analysis we warned traders that the chances of a pull back have increased dramatically. There are signs that suggest a pull back towards 4,250 is very probable. With a lower high in formation, we could target a move towards 4,373 minimum, but ideally towards 4,270. Medium-term trend remains bullish as price is still inside the red upward sloping channel. However a pull back towards the blue support trend line is not necessarily a bad thing and is totally justified as we are overbought in the near term.
