Last post - S&P500 at "neckline" support, called for a weak rebound towards 1100, followed by a reversal down. Price rose in what looked like a 4th wave to 1190, then gapped down sharply in yesterday's trade to 1141. Based yesterday's strong action, hourly and daily oversold conditions & RSI positive divergences, a sustained rebound here is likely.
Initial rebound will encounter strong resistance at 1100, which is also the 200-day M.A. A sustained break above will target the 1150 area to setup a possible Head & Shoulders pattern. In the medium-term, a break below 1040, will target the SPX 900 area. This coincides with my view of a short-term rebound in Asian markets.
All the best!
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