SPX continuation wedge
SPX is testing the 3700-3750 support zone of the continuation wedge for an extension higher. A confirmed break above this zone would give us a higher probability of the short trade entries to target 4000. A reversal here and a break below 3700 is now required for downside reversal. The overall medium-term is uptrend but we need to see a confirmation break above 3800 for the upside extension. As long as the SPX is above 3700 there will be an upside extension possibility.
Note – We are inclined to long trade entries with the stop loss below 3740.
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