Here is the current SPX chart. It is in a very tricky status, still sitting above the trend line that was recently broken out by it. However, it is struggling in a very narrow space between the overhead resistance and the downtrend line support between 4050ish to 4165ish. It should be noted that there are a few bearish factors putting pressure on it: the bearish seasonality, a double top setup, a trending down momentum with MACD. As such I think there is a good chance we will see a retest to the 200 DMA around 3970 or even the next support around 3806. After all, we have to go through the next 5 months of the most bearish season of the year, May to Oct, during which there will be plenty of scary market-moving snafus popping up.
This will be a great time period for active traders, swinging with the market volatility!
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