The first bounce has arrived above the 1980 to 2000 support area. 2020 is a former minor resistance area so it too is a minor support area. While I’d expect the 1980 to 2000 area to be hit before too long, it is bounce on for now.
Here is the daily chart to show broken support that ranges from just below to just above 2060 as the first area of resistance. Figure the SMA 200 (currently 2064) as logical resistance.
Old friend the 60 minute chart agrees with that as it may bounce to or through the moving averages once again.
The wild card is the sentiment backdrop, which was supposed to be bearish. I say that facetiously because negative events like the terror attacks in Paris can often spark relief rallies in markets that were already dropping hard to support.
If SPX were to get much above 2060 we would have to evaluate whether or not a drop to 1980 to 2000 is still in the cards. For now, the plan remains unchanged by my eye.
