SPX Technical Analysis

Head and Shoulders Bottom (HSB) in the SPX

The SPX has formed a perfect HSB. This afternoon's drop due to disappointment with the Fed is a perfect retest of the Neckline (NL). Considering the season and the NL retest, we consider this a buying opportunity. The HSB implies a move to 1580 (OBJ). Therefore, we'll move to 100% long SPX related funds at today's close.