S&P 500 - Where To From Here?

Technical analysis does not have to be complicated. I try to share simple setups with my readers, and stay away from intimidating ones.

SPX had a nice bounce in the last two trading sessions. If you are still long, this is the area to start lightening up. If you are an aggressive short and want to establish here, there may be another day or two of upside left. One thing is clear from my chart below - the price is up against resistance trendline. It is also in the vacuum above the upper bollinger band, which usually means that it is gasping for air and will probably suffocate shortly. Similar setup on the chart resulted in a pullback to backtest the breakout. I expect the same outcome here, after another day or two of slight follow-through.

click on chart to enlarge