$SPX: Next Days/Week
Much of the recent rally has stemmed from soothing assurances from central banks and short covering.
I suspect most of the shorts were wiped out at 2072 ish, the highest retracement level during regular trading hours following announcement of the results of the British referendum.
In recent weeks, the market has been using Fib extensions of recent extremes to chart its course. The last high during RTH was 2113 while the last low was 1992 ( 121 points ) suggesting the market will first target 2141, a 1.23 Fib extension off the recent lows.
Much as in 1957 and 2000 to 2002, the market has spent over a year attempting to break through 2135. If it breaks through its likely a game changer; if it does not, and it fails ( 2128 ) we should expect a decent retracement to, possibly, 2043.
I suspect most of the shorts were wiped out at 2072 ish, the highest retracement level during regular trading hours following announcement of the results of the British referendum.
In recent weeks, the market has been using Fib extensions of recent extremes to chart its course. The last high during RTH was 2113 while the last low was 1992 ( 121 points ) suggesting the market will first target 2141, a 1.23 Fib extension off the recent lows.
Much as in 1957 and 2000 to 2002, the market has spent over a year attempting to break through 2135. If it breaks through its likely a game changer; if it does not, and it fails ( 2128 ) we should expect a decent retracement to, possibly, 2043.
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