SPX: Trading Levels

The SPX has completed about 98% of a mini head and shoulders pattern on the daily charts. Now we just watch to see if it breaks the neckline which is conveniently the intermediate downward trendline. The SPX has put in a lower high and lower low like the DOW, so the broad market is definitely showing some weakness.

We are still watching to see if the weakness continues which will further complete the move anticipated when the SPX broke down from the rising wedge on May 21st. This is a bearish pattern and price action can be aggressive to the downside once they confirm. A target for this pattern for the SPX would be near the base of the wedge which would be about 1330.

SPX Daily Chart: