The SPX tested a confluence of Fibonacci extensions.

The rally in the SPX seems to be in full swing once again as we broke the upper trend line late last week that has capped rallies since 2018. Today, the indec tested two Fibonacci extensions. One is the 127% extension of the most recent range from the 3020 high to the spike low this summer at 2772. The 161% extension of the April highs at 2956 to the lows at 2728 in May was tested as well just below 3100.

If you think that confluence will contain the SPX, I would keep an eye on the RSI which has broken its trend line which suggest this move higher is happening on stronger buying.

SPX500 Confluence of Resistances

Blake Morrow