Black line- resistance trend line (broken)
SPX is bouncing towards 3,920. Short-term trend remains bearish but price is bouncing off the broken resistance trend line. This pull back towards 3,820 could very well be just a back test after the break out. So far price has formed a higher low at 3,809. If bulls manage to hold price above the downward sloping trend line, then we could see another leg higher that will challenge 4,195 February highs. Concluding, SPX is bouncing off key support. Bulls have the potential to turn things and start a new upward wave. However if price fails to stay above 3,800, things are expected to get even worse.