SPX broke below the middle bollinger band on the daily chart yesterday and ES has been bouncing overnight. That looks like a bear flag so far, and we'll see today whether the middle BB at 1437.67 SPX and the rebroken SPX pivot at 1440 SPX can now hold as short term resistance. It's worth noting from the chart that the daily RSI is now almost back to 50. In a strong bull trend the 45-55 area acts as decent support as I've marked on the chart, so we are now in the likely reversal zone here for a reversal back up if this is just the retracement on equities that I think it is:
here. The day after QE3 was announced I was looking for a short term high at channel resistance in the 1470 area and we saw that high made. The obvious retracement target is channel support, now slightly over 1410, and there's no reason to think that what we are seeing is anything other than a retracement unless this channel breaks. I have redone my 60min SPX chart to show how perfect this rising channel is and while it lasts it should be respected:
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