Chart of the day

SPX is bouncing off the short-term support 4380. After this bounce, we are expecting another 4510 test

4500 is the most resistance for the upside continuation and an invalidation of the downside reversal and a break below the rising wedge. If we do not see a break below 4380 today on the CPI announcement we can see another test of 4500 as we expect near-term and then we will know more about the prevailing direction of the market.

Long trades, you should open only upon a break above 4500 and a confirmed break below 4380 for short trade entries. This is a consolidation near a key level and we should expect a breakout soon so be careful and patient.