Is the SPX Rebound Corrective?
The SPX reacted strongly higher following the NFPs with the only fundamental excuse being “weaker wage growth”. Today’s price action puts that rally in question.
The rebound higher so far is orderly, contained within an ascending channel and today’s gravestone doji might be a warning sign. A break below 3800 is needed to confirm, in which case we are looking for at least a move to 3700. Resistance is at the 200DMA at 3978 and a break above it invalidates that view.
Steve Voulgaridis / Blake Morrow
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