The last couple updates noted that we appeared to be approaching an inflection zone. On Friday, I had noted that another wave up might be needed, and we did get a new high after that update -- and that may finally mark a complete wave off the December lows.
Bears, of course, want to hold the breakdown of the black channel against retests; bulls tested the channel at the close yesterday, and so far that test has been rejected. Sometimes the market likes to create a second test of such channels, but I'm not sure if it will do so here or not.
(Please note typo: Fib area should be 2589-2604)
In conclusion, presuming bears can make this breakdown stick, SPX may take aim at the 38% Fib retracement. If it does, we'll see how it looks from there and decide in real-time if it looks pointed lower (toward the 50% or 62%). Obviously, if it sustains a breakout over this month's high, then all bear bets are off. Trade safe.
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