SPX is trading near all time highs around 4160. Price is showing signs of a reversal. After the sharp rise from 3800 level, SPX is justified to make a pull back correction. Our first pull back target is at 4075 area.
Red rectangle - pull back targetRed line - short-term resistance
Blue lines - Fibonacci retracements
SPX has started making lower lows and lower highs in the 4 hour chart as shown above. Price has resistance at 4180. As long as price is below the red short-term resistance trend line we look for a deeper pull back. Recent low at 4127 is important support that if broken will confirm we are heading towards the 38% Fibonacci retracement. If price breaks above the red short-term resistance trend line, we should see next a move towards the 4200 area.