SPX broke the minor support at 1622.90 and has now gone back to retest it. The next support is the Cycle Bottom and 50-day moving average at 1610.00. SPX behavior here will tell us whether it will accelerate immediately to the downside or hesitate yet a few more days.

While SPX is testing a support line, VIX is testing its Cycle Top resistance at 18.25. The Head & Shoulders formation made its target and now we will move on to the next target…the Cup with Handle.

There’s no need for a lengthy pullback here, so we may see a breakout above resistance an the prior high later today.

Regards,

Tony

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Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.

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