Signals

Short term signal: UP - it will turn down bellow 1690
Intermediate term signal: UP - it will turn down bellow 1678
Comment: The price action looks like exhaustion gap. We had one runaway gap around 1670 and you can see the difference clearly on the chart - gap and move higher and today gap and move... lower. It is too early to get bearish, but today the idea for a top does not look so stupid. The trend stays up and as I wrote the bears should master a reversal this week or the pattern which I am showing will be invalidated.

Watch price behavior for clues:
- top is near and leg down to begin - 2-3 days topping and sharp sell after FOMC.
- a rally higher underway - not more than a pullback to support around 1682 and another move higher.

Levels to watch SP500:
- 1710-1725 - resistance zone from different trend lines
- 1675-1682 - support
- 1627 support level
- 1598 is major support.