Belt And Braces

SPX closed ten handles or so over the 5dma yesterday, so SPX is back on the Three Day Rule. If SPX should close back below the 5dma today or Monday then we should expect a retest of the last low at 2583.23 in the near future. At the moment the 5dma is at 2638 and SPX looks likely to close the day below it.

As it happens that would just confirm the bear flag rising wedge that has already broken down on ES with the same minimum target, so one way or the other that retest looks likely. At that point we could see the second low of a double bottom or continuation down towards the major support area below at 2530-40, the 2018 low and possible H&S neckline at 2532, and the annual pivot at 2538.

Everyone have a great weekend.

SPX 5dma chart:

ES Dec 60min chart:

Written by:

Richard Chappell

Jack is a 20 year retail trading veteran and co-founder of The Art Of Chart. He started his blog at in 2010 and since has published tens of thousands of charts looking at hundreds of trading instruments across most tradeable markets, doing original work mainly in the areas of trendlines, patterns and divergences. At The Art Of Chart Jack has taught trading skills, technical analysis, and the discipline and trader psychology that allow those to be used effectively in trading.

14th Dec 2018

Leave a Comment

Your email address will not be published. Required fields are marked *