Chart of the day

SPX is bouncing testing the strong support 4430. This bounce off this level would lead to a continuation higher into 4530 upside triangle resistance and higher.

This is still viewed as the fourth wave pullback of the recent five upside waves and consolidation could come to an end if we see a test and a break above 4600. If we get a confirmed break below 4400 an upside reversal can be invalidated and we could see a deeper pullback into 4250 instead of an immediate continuation.

Long trade, you can open here with the stops below 4400. We favor the long trade entries as we expect an upside extension from this vital support for a strong swing higher into 4600.