SPX: Preparing for the Bounce

The SPX had an ugly week which saw the price action retest the March lows, but today's close was a positive one that formed a doji on the daily charts.

(NOTE: my chart package is not showing yesterdays big red bar)

The trend is down so my intermediate bias is still down, but we are in a very oversold condition right now so I am preparing for some short term bullish opportunities as well.

I'm using the fibs for my targets: first target is 1297, second is 1324.

If you look at the 2 year chart, the historic price action suggest that there is a high probability of a 38.2% retracement within the next few weeks. With the currently volatility is could easily run to 1324 by the end of next week. Be prepared for anything.


SPX Daily Chart: