The following 60 minute chart of the S&P 500 Index (SPX) shows intraday support and resistance levels at 2650 and 2700, respectively.
The momentum and relative volatility index technical indicators have plunged on today's action, so far (as at 1:15 pm ET, Thursday April 19), and price has fallen back into the lower 1/4 of the uptrending Andrew's Pitchfork channel...all of which are suggesting that the latest attempted rally that began on April 2 is pretty weak, but the pullbacks that have occurred since then have been tight and shallow.
However, the level of volatility and momentum in today's intraday action may indicate that this may end soon and that today will mark a pivot point of some kind. Either we'll see price break free of this tight trading action and spike to 2700, or we'll see price plunge down to 2650, with a continued breakout in either direction.
We'll see what happens by the end of the week.
* UPDATE @ close...
Price rallied somewhat into today's close, as shown on the 60 minute chart of the SPX below. The momentum indicator is still below zero, while the relative volatility index indicator has popped above the 50.00 level.
Should price break and hold above 2700, watch for MOM and RVI to move up and hold above zero and 50.00, respectively, to confirm the sustainability of a further rally. Otherwise, a failure to do so may see price retest 2650, or lower.
Either way, it appears to me that it's winding up for a strong price move, one way or the other.
N.B. One last chart to keep an eye on is the following SPX:VIX ratio chart (monthly timeframe).
Price has popped back up and is currently above the 150 Bull/Bear Line-in-the-Sand level. It will need to hold above that and break and hold above 200 if we're to see any kind of sustained rally in the SPX to, potentially, new highs.
