SP500 trading at neckline support

As mentioned in our previous post, the price at 4050 region was at a mildly extended level and that price would fall back to within the range. Price fell back last week and even reached the key support level at 3915 region.

If price were to have a breakout confirmation of the key support region at 3915, the equities index can extend its decline towards the next support region at 3750. However, if price were to extend above 3960, price can potentially move back towards the 4180 resistance region.