SPX downtrend will get tested.
The SPX has rallied over 20% off the lows and traders and investors alike are shouting “we are out of the bear market!” But before we get too comfortable with the (bear market) rally, we have to point out we are close to testing the downtrend line and 38% retracement. Both of which are key for the bears to hold to keep the downtrend strong and intact. RSI has been divergent the last 1-2 weeks and now has worked off the oversold conditions and are back to mid range. So, before bulls claim victory, I think a major test is coming the next couple trading days.
