U.S. Stocks Ready to Bounce?

This websites prior blog noted the S&P 500 (SPX) had ended the 12/18/24 main session near two support levels.

The daily SPX chart courtesy of Trading View updates the action.

The SPX on 12/19/24 failed to break below the upper line of the Ichimoku Cloud and chart support at 5.853.01. 

The 15 – minute SPX chart supports the theory that the SPX could begin at least a one-day rally. 

The intraday pattern appears to be an Elliott wave – Ending Diagonal Triangle.  This pattern only occurs at the termination phase of a larger movement, in this case down.

However as of this writing the S&P 500 – E – Mini futures are trading more than 20 – points below the SPX 12/19/24 session low.

If  the SPX 12/20/24 session opens above the 12/19/24 session low there’s a good chance for at least a one- day rally.

If the SPX 12/20/24 open is decisively below the 12/19/24 low there’s a good chance of more downside action throughout the 12/20/24 session.