SPX made a serious push higher today towards the upper end of the expective move, but not without some volatility and two sided action early in the session. While SPX did gap higher, it quickly sold off and erased all of the gains for the session, briefly even turning red on the day. Dip buyers stepped in at the gap close and pushed prices back up, and never looked back.

SPX started the week and roughly 7350. What we saw this morning could be interpreted as a simple break out, retest and continuation pattern. Price gapped higher, retested the 7350 level, confirmed it as support and then bounced nearly 100 points.

The candle today is almost a flipped image of the one from Friday. There have been some really interesting and unique patterns on the daily candles lately and today was no exception. The main question now is whether or not the momentum can continue on the daily chart. The last couple of attempts at a push higher have failed.

7480 becomes the first target of interest to the upside. It is a critical level from the June 9th candle and also happens to be the upper end of the expected move. If there is follow through tomorrow on the momentum from today, then 7480 should naturally be the next target.

Even on the shorter timeframe, price seems to be escaping the most recent range. The grey box is marked as the range from most of last week and we can see price clearly breaking out of it today.

We can see the next zone around 7480 be another magnet zone where we had previous consolidation. The assumption is that there is supply/demand in this area that the market is gravitating towards.

Given how last week closed and the geopolitical uncertainty there was, I think a lot of people expected SPX to open lower today. Of course, a well timed tweet on Sunday before futures opened quickly alleviated that. I mentioned in my post yesterday that big swings from news/tweets would be the theme of this week. So far, that seems to be playing out.

End of day tomorrow will be the half way point of this shortened week. As we get closer to the holiday, expect volume to die out and price to possibly drift higher if there is no further news that spooks the market. If all else stays equal, then we should gravitate towards 7480 with ease and possibly even higher.

The bulls made good effort to take back control today and if the news and tweets stay on their side, it should be smooth sailing from here. The only key level that matters to the downside right now is 7400 (psychological) and 7350 (technical). To the upside we have 7480.

Good luck!