SPX is trading at all time highs above 4100 price level. Trend remains bullish since the bottom from last March of 2020 as price is making higher highs and higher lows. Today we focus both on the short-term and long-term view of SPX to see which price levels are important and could affect longer-term trend.
Using the Ichimoku cloud indicator in the short-term 4 hour chart we see prices turning lower. Price today closed below the tenkan-sen (red line indicator) and this implies that a move at least towards the kijun-sen (yellow line indicator) is imminent. Support by the kijun-sen is at 4108 when price closed today at 4124. If the 4 hour candle breaks below 4108-4100 we should expect the index to continue lower towards the Ichimoku cloud (Kumo) around 4060-4050. This could be a great short-term trading opportunity.
On a weekly basis there is no sign of reversal for SPX. Price is still inside the wedge pattern and traders need to keep an eye on the lower wedge boundary at 3960 price level. As long as this price level remains intact, bulls remain in control of the trend. So the short-term pull back we expect will only develop into a bigger correction if price breaks below 4000-3960 price level.