Last week the bulls failed to push the SPX to an all time high, then bears showed up and aggressively filled the gaps. The pullback was not quickly bought and the bears showed some good strength. However, this week, I still think the pullback will be bought. I also have a bunch of my bounce models that are now triggering. Any weakness on Monday can be a decent short term buy and we could see a bounce back to the 210 level or so. Then we will see if the bears can take back the ball.
After any bounce, if the 207.5 level is breached (preferably later in the week) then we may once again test the 204 level. We also have a very ugly 2 bar reversal on the weekly chart. With this type of pattern, a close below this weeks low is short setup, with a stop above the all time high.
My medium term models are mixed.
My short term models are bearish.- Trader Tony