Broad Market Consolidation

Monday was very flat as the broad markets traded in a very tight range. Lets keep watching the charts trendlines to see which way the market decides to go. A key support area tomorrow on the SPX will be the bold green trendline and the 38.6% fibonacci level. Notice the box in the chart called "Open Area." This zone from about 1530 to 1525 has no recent horizontal support so if we break below that 1530 area tomorrow there will likely to be a quick move down to the 1525 area for support. The 100MA is also sitting at 5125 which should offer some additional support. If we decide to move up on the open our first target would be to break and hold the 1540 level -- this is also a 261.8% fibonacci level (not pictured) from the June 9th move so we may consolidate at that level for a while before moving up again.

SPX 15m Chart