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500 index hit a strong Fibonacci expansion level and reversed course very quickly.
Kissing the underside of old support, which becomes new resistance can be a great entry point as the potential for a “kiss good-bye” becomes quite high! When the NDX created this situation we suggested it was a low risk time to take positions to score on defense in the NDX 100, as it was kissing the underside of resistance (see post here).
Currently the 500 index looks to be creating a new falling channel and it is on support at this time. If the bottom of this channel is taken out, downside action and momentum should pick up!