US/China trade relief gapped SPX (and other markets) up on Monday and US/China trade anxiety is pulling it right back down to fill the gap. That stuff is all noise.
The chart shows the projected open based on this morning’s futures.
We brought the ‘M’ top scenario into play with the break above the 50 day moving average and the green dashed trend line. The trade noise is jigsawing the market within its still-intact short-term bounce parameters.
Short-term lateral support at the 2680 area includes the SMA 50 and the trend line breakout point. That is important support for the top-test scenario. Below that area we’d need to consider that the bounce has failed. Beyond that the SMA 200 is sloped up and has supported the last 3 declines and would be the next support test level.
