Violet lines- Fibonacci retracement levels

yellow rectangle- support

SPX remains in a short-term up trend making higher highs and higher lows. Price has now retraced 61.8% of the decline from 4,136 top at December 13th. The 61.8% Fibonacci retracement is key short-term resistance level. Price recently made two pull backs towards 3,940 and both times price was respected and trend supported. This is now key short-term support. Bulls do not want to see price break below this level. On the other hand, short-term upside target is the next Fibonacci retracement level at 4,050-60. At the 61.8% retracement level we usually see trend reversals. In this case if we see a rejection and a break below 3,940 we will see that trend has reversed to bearish. Until then bulls remain in control.