SPX - Hourly RSI BOUNCE PLAY
SPXChart says it all, but basically, using the fib extension from "A" -- > "B", we see the 0.61 retracement level coming soon as support. This coincides with an hourly bounce that is due Monday morning. Price will likely hit the 0.61 level @ "C" ($2,750). From there, I set a price target at D ($2,768) which is based on two factors:
1) Looking back at historical data, the last three times RSI has been oversold to these levels on the hourly, price bounced sharply 0.60%.
2) Assuming it does bounce 0.60%, price will hit "D", at the 0.23 fib level, determined from measuring the move from Thursday's close, to Friday's low.
From there, I expect more bearish action to lower lows.
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