Red lines- bullish channel
SPX is trading around 4,500. Technically trend remains bullish as price continues making higher highs and higher lows inside the red upward sloping channel. SPX has approached the 2022 and all time highs and we should warn traders that price is now is at a very crucial resistance area. The chances of a major reversal are high at current levels. In the near term we still expect for SPX to make at least a pull back towards 4,250 and the lower channel boundary. If price has formed a lower high yesterday and is now starting its downtrend, then we expect to see SPX push lower towards 4,270. Our primary scenario is bearish, expecting SPX to pull back towards the channel support around 4,250-70. Failure to hold above this level, will open the way for a bigger pull back.