The S&P has recently broken out of range-bound conditions and made a leg up into new highs.
Last week, we seen the market came down off those new highs in a bearish counter trend, correctional move. There has been some serious selling action within this correction – which is typical on the S&P where you see bearish markets trigger panic.
Last session, the market found support back at the old breakout level – for now, is holding as support.
The indecision ‘doji’ candle did close with some bullish tone it the body. If the upward momentum is to stay intact, this level really needs to hold as support.
If price breaks the doji high, we could see the uptrend resume, but if it fails and the lows are broken – the market could fall back into the range and head down to test the support level.