As well, the Awesome Oscillator has flipped above the zero level.
Both of these are hinting that further buying may be in store...I'd need to see the third moving average turn up to confirm potential strength.
However, the Balance of Power is still with the sellers, albeit somewhat tepid, so, unless we see this flip to the buyers on this timeframe, we may be in for a bit more weakness before we see sustained buying resume.
Near-term support sits around 3070. If that's crossed, look for price to, potentially, re-test 3000, or lower.
Price on the following SPX:VIX ratio chart has broken back above 100 and the 50-day moving average, once again.
The RSI has crossed above the 50 level, the MACD has formed a bullish crossover, and the PMO is poised to cross to the upside.
We may see serious buyers step in on the SPX if:
- price can remain above 3070
- the AO remains above zero
- the BOP flips from sellers to buyers
- the RSI can hold above 50 on the SPX:VIX ratio
- the MACD can hold its bullish crossover on the SPX:VIX ratio
- the PMO forms a bullish crossover on the SPX:VIX ratio
Otherwise, we may see some minor selling on the SPX down to the 3000 level, or even a stronger effort to push it much lower toward 2800.
