Chart of the day

SPX is reaching the key upside support. The support zone is 4100-4300. A confirmed break below this zone will lead to a hard reversal lower into 3900.

I see this still as a fourth-wave pullback as long as we do not have a confirmed break below the indicated zone. The critical medium-term and Q4 20203 resistance upside is 4300 and a confirmed break above it is required to confirm that we are in the beginning of the fifth wave.

Long trades are favored to be opened here with a stop loss below 4130. We prefer the long trade entries and building a buying position at this stage as we see an ongoing price action to continue higher after this support test. However, we are careful if invalidation would come. Short trade entries could come only upon a confirmed break below 4100. You can trade the options as well