Today 10/14/21 the S&P 500 (SPX) rallied to just below important resistance.
- Fibonacci .618 retrace of the 09/02/21 to 10/04/21 decline.
- Maximum volume using the Market Profile method on S&P 500 E-Mini futures is near the .618 retracement.
- Broad chart overhead resistance.
The SPX 60 – minute chart courtesy of Trading View illustrates the action from the 09/02/21 top.
Note the 60 – minute RSI reached the edge of the overbought zone – 70%.
If the SPX breaks above the high of overhead resistance at 4465.40 it could open the door for a move up to at least the 09/02/21 high.
If the resistance holds it opens the door for a move below the 10/04/21 bottom.
Traders are 75% short non-leveraged SPX related funds. Continue holding short with a stop loss on a move above SPX 4465.40.