SPX Daily Chart Fractal

Another large upside move today for the SPX tagging the 1344 gap fill. The 1360 gap above and 1280 gap below remain open. Note the fractal represented in the blue boxes. The 20 MA now moved back above the 50 MA so use the previous move in April as a guide. Note that as the April fractal proceeded, the indicators came up near prior highs, the RSI was actually over the prior high, but now, the indicators are showing a weak profile even though the price is near the 1355 prior high.

The red circle provides a target area that will fill the 1360 gap and set up negative divergence for a new top. The question is do we simply go there right away, or do we pull back for a rest again before heading up to the red circle? The answer is subject to the news flow, this especially apparent as markets gyrated wildly on any whiff of debt ceiling or Euro news today, so flip a coin. The 1355 prior high, then 1360 gap fill are the targets above, 1333 serves as near term support below. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.