SPX traded as lows as 2008.80 on Friday and closed (weekly) below the significant support at 2020. The penetration through 2020 support was less than 1% (0.55%) which signals a high likelihood of a back test of that support soon, possibly on Monday. Also, as we enter into the most bullish trading period of the year, chances are good that SPX rallies on the back of short covering and dip buying to test its ADL around 2060 later in the week.
For SPX, weekly immediate support zone is at 2000 - 1975 and weekly immediate resistance zone is at 2020 - 2060.
My plan is to open first of four short positions in SPX and IWM as SPX back test 2020, very likely on Monday.
SPX: S&P 500 Index D-SMA: Daily - Simple Moving Average
DJI: Dow Jones Industrial Index D-EMA: Daily - Exponential Moving Average
DJT: Dow Jones Transportation Index PDL: Primary Downtrend Line
NAZ: NASDAQ Composite Index PUL: Primary Uptrend Line
RUT: Russell 2000 Index ADL: Active Downtrend Line
OEX: S&P 100 Index AUL: Active Uptrend Line
NDX: Nasdaq 100 Index DTL: Dynamic Trend Line
TUL: Tentative Uptrend Line TDL: Tentative Downtrend Line
Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation. Furthermore, the opinions expressed may change without notice.