Source: NationalFutures.com
The PP of each weekly candle is depicted as a blue cross on the weekly chart of the SPX below.
You can see, at a glance, where the current price is relative to those...giving an indication as to its relative strength/weakness as the price moves above/below each one in the coming days and weeks.
On Friday, it closed above the PP for the July 20 week and only remains below the PPs of the weeks of December 23 to February 17...which represents relatively minor resistance, considering that it fought through all of 2018, most of 2019, and most of the 2020 overhead resistance since the March low.
R1 sits at 3265.94 and S1 at 3155.78, which represent near-term resistance and support levels or targets.
If the SPX holds above this week's PP of 3196.99, there's a good chance it will reach R1, or higher; otherwise, a drop and hold below it could see it hit S1, or lower.
Volatility has dropped off the past couple of weeks, as the SPX:VIX ratio broke above the 100 level, once more, as shown on the following daily ratio chart.
Its target is the 200-day moving average around the 150-155 level, which converges with the next level of major price resistance.
The RSI, MACD and PMO technical indicators are all bullish, so look for that to continue in order to confirm any further sustainable rally on both the SPX:VIX ratio and the SPX.
Otherwise, any hesitation or reversal on these would not bode well for SPX buyers...particularly if the SPX drops and holds below the PP at 3196.99, and, especially, if the Balance of Power flips from buyers to sellers on the weekly timeframe (falls and remains below zero).
