At this juncture, I see two possible scenarios for SPX: 1) it holds under 960; or 2) it pops to above 1000. In either case, I expect a multi-week downtrend to occur within 2 weeks.
The above chart is the 3y daily chart for SPX. Notice the three trendlines which will act as resistance. Currently, SPX is making it's first test of the upper two trendlines. I see two important considerations regarding these lines. First, in my experience, price will never breach a trendline on the first pass without a correction, but it can temporarily penetrate it. Second, these trendlines have been oft-cited on the internet in recent months. This means that the market will either start dropping before reaching them (thus preventing everyone from going short because price never reaches their target), or price will temporarily shoot through (making everyone believe that the lines have been rendered worthless). I doubt we'll see price hit them perfectly and then retrace. I am personally hoping the below-960 scenario plays out, but if there are too many other people like me, I think we'll get that false break to 1000+.
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