SPX is going for the 2nd upside long-term uptrend Pitchfork channel resistance
On the weekly SPX chart, we can see that the instrument has bounced off the uptrend long-term Andrew’s Pitchfork channel 3257 the first channel half median line. We saw a perfect bounce off this median line and the instrument is going for the upside channel resistance retest 3600 again. If this bounce from the 3257 will be sustainable after this month pullback we could see an extension higher to 3600 again which is the uptrend channel resistance line and a confirmed break above this level is required for an upside continuation.
On a daily chart, we can see that the instrument price action is within a medium-term downtrend Pitchfork channel with an upside resistance line at 3450 which is on a test now. This test of the downtrend channel resistance line is good for both long and short trade entries. You could go short here with the stop loss above 3500 or you can go long in the case of a confirmed break above 3550. A rejection here and a break below the small rising wedge could lead to a test of 3000 and even lower to the median line of this channel.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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