The S&P 500's (CME:SPU14) open bounced almost 6 points from 1945.75 to 1951.50. Recovering 1950.25 through the opening 15 minutes of volatility would have signaled preliminarily that the opening bounce’s sponsorship was strong-handed, and that it had absorbed sellers.
1950.25 held. Exiting the opening 15 minutes of volatility 1948.75 also triggered a sell signal there that extended down to only 1947.50. Back above 1950.25got a benefit of the doubt that momentum was reversing up. The signal’s minimum target of 1953.25 was exceeded to fully test 1955.75-1956.75.
1955.75-1956.75 is Tuesday afternoon’s prior lows. It is significant resistance. So, its recovery would be very bullish. Meanwhile, reacting back down under1953.25 would now signal resistance had held.
The minimum objective under 1953.25 would be to correct the post-open rally down to 1949.50-1950.25. Its potential would be to retest overnight lows down to 1943.75-1944.00.
Closing today back above 1953.25 would be the minimum requirement to consider that Tuesday’s lows may be holding their retest. Even then, 1958.50-1961.75 must be recovered to confirm, and to also signal a retest of last week’s highs is in-play. Closing under 1953.25 would signal a deeper dip targeting 1931.75 underway.