Upside Targets for SPX Running Out of Gas

Upside Targets for SPX Running Out of Gas
January 05 15:07 2019

After puking the day before the S&P 500 ripped higher on Friday on better than expected economic data.  The volatility has been wild for sure and the question is where can price go if we see some follow through on Monday

Upside SPX Target

What is great about taking out a major support level is it makes for a nice clean resistance target.  As you can see in the chart below the prior support area of 2580-2560 is our clear upside target now.

Price will either rally to this point (assuming we move higher), test and bounce off of it before going lower or it will challenge the resistance and breakthrough to establish back into that higher range.

Pretty simple and straightforward.

Personally I am hoping for a rally toward 2580 to get short on a reversal candle if one forms.  Then I can use that upside resistance as my stop loss, with plenty of downside potential if price does roll over.

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