I was saying in our free monthly Chart Chat on Sunday that the obvious next downside target on SPX was main channel support, and a test of that trendline that would mean that the channel had likely evolved into a rising wedge, which is something that happens regularly. If you’d like to see the recording of that it is posted on our October Free Webinars page.
At the low yesterday SPX hit that rising support and held it, and hourly buy signals fixed across the board on SPX, NDX and RUT. That should be the start of a new leg up and, as long as that trendline support remains unbroken, the next target within the rising wedge is wedge resistance, due to reach the 2965-70 area by the time of the next high window in early November.
Full Premarket Video from theartofchart.net – Update on ES, NQ, SPX, NDX, RUT, CL, NG, GC, SI, HG, ZB, KC, SB, CC, ZW, ZC, ZS, DX, EURUSD, USDJPY, USDCAD, AUDUSD:
SPX 60min chart:
We are doing a free public webinar on Thursday after the close looking at Paragon Options, the futures options service that we launched in June, and if you’d like to attend, you can register for that on our October Free Webinars page.