The S&P 500 is retesting resistance from its broken uptrend and signs of topside rejection are appearing, according to Tony Sycamore, Director of Australia-based TECHFX TRADERS (see Chart 1).
Sycamore says 3030/3050 is the key resistance zone, which comes from the broken uptrend line and the 2016 low. Last week’s rejection of this zone suggests a pullback is underway though he stresses a close below the 2960/50 support area is needed to provide confirmation (see Chart 2). Should this break occur it would signal that a medium-term Wave v high is in place at 3023.5 and that a decline initially towards 2730 is underway. Sycamore thinks this may occur soon after the 31 July FOMC meeting.