Chart of the day

SPX is testing the 5300 level of strong resistance for an upside continuation and a steep uptrend line. A break above this level will mean that the long-term five waves are not finished and that we could see a new extension higher. Rejection here will lead to a downside correction.

Only in the case of a break above 5300, we can expect an upside continuation and an extension higher in a new uptrend. I strongly believe that the whole stock market is reaching the top and that we will see a reversal here to test 4800. For this to happen we need to see a break below 5150.

_{You can open a short trade entry here or upon a break below 5150 with a stop loss just above 5400. Long trades you can open upon a confirmed break above 5350.}