The S&P has been on a killer uptrend lately with prices driving higher into all time high prices consistently during the last few weeks. Retracements back into the mean value have been the best of buying opportunities as it has acted as one of the major turning points in the trend.
Last session the market retraced into the mean value, and a swing level dominant from the daily timeframe perspective. The counter trend retracement move terminated here and rejected the lower prices printing a bullish rejection candle. If price manages to break past it’s highs we could see the next stretch upwards for this trend. If it fails and breaks the low, we could be looking at a much deeper downward movement as the support level breaks. If the bearish event happens we will be looking to employ other forex trading strategies to take advantage of bearish situations.