SPX: Dodged a Bullet

The SPX averted a fall of the cliff today and had an impressive reversal closing at 1245 which is well above the 1220 cliff's edge.

Now the hard part... staying up there.

The SPX put in a bottoming tail Tuesday and today's candle closed well above yesterday's high give this a very bullish set up. It could also be characterized as a bullish engulfing pattern which has additional importance since it's at the bottom of a long downtrend. These are the bullish aspects of today's trading.

Tomorrow the 1230 level will be an important area to hold since that's approximately 1/2 way down today's white candle. A break below 1230 gives the bears a chance to do some more work.

Current bias: Short term bullish

SPX Daily Chart: