The S&P 500 index has rallied from the latest low and has nearly reached initial resistance at 1916. This is a first level from which we could see selling pressure re-emerge. If the index is able to move above 1916, the next zone of resistance is at 1937 – 1963 and the bias will remain bearish while below these levels.
Any renewed decline into the larger support area at 1820 – 1880 is unlikely to hold and a breach of 1820 would open the door for an accelerating decline toward 1700. Lower support on any breach is at 1625 – 1704.
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