Blue line- support trend line
Red lines- bullish channel
SPX is trading around 4,430. In the weekly chart we see price breaking below the blue upward sloping support trend line. Although the week is not over yet, I believe there are increased chances that the index will remain under pressure and price will fall towards the lower channel boundary. SPX remains inside the medium-term upward sloping channel. In previous posts we talked about the vulnerability of the index and the increased chances of a bigger pull back and a test of the channel boundary. Next key support is at 4,336 recent low. A break below this level will push price towards 4,300 and the lower channel boundary. In fact as long as we trade below 4,516 we expect SPX to remain under pressure.
