SPX has now closed above the 2022 bearish trend line for a couple days and also on a weekly basis, and is attempting the previous resistance zone for a fourth time since May 2022 (Chart 1).
No change in large tracking counts (Chart 2) with several short-term scenarios (Chart 3). How SPX reacts to the resistance zone matters.
The same trend remains of concern in SPX.
Initial reaction early this week was followed by a strong rebound Friday, bringing SPX to test the same trend line as of Friday's close.
SPX is now probing the key resistance line since 2022, the 2022 down trend line.
Unlike the first two probes in Q1 and Q3 of 2022, the most recent probe in Q4 2022 has resulted in only a moderate pullback. And now the index is attempting to fight it gain.
Little change in the big picture but interesting small-degree structures have developed.
