SPX Approaching Significant Near-Term Support
|Today's weakness in SPX is approaching a test of very important, near-term support lodged between 2270 and 2257, which must contain the selling pressure to avert downside follow-through that tests the prior significant pullback low at 2233.62, established on Dec 30, 2016.
If the end-Dec low at 2233.62 is violated and sustained, my pattern work will indicate that the larger upleg off of the Nov 4, 2016, (pre-election) low is complete, and that the most consequential correction since Aug – Nov, 2016, (2193.81 to 2083.79, or -5.0%) is in progress.
As long as 2270/59 remains viable support, the bullish scenario remains intact, and calls for a climb to 2315/20 after this minor, downside hiccup runs its course.
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