SPX overthrew the top TL before reversing and also back-tested that TL before heading lower again (highlighted on the chart).
Right now, SPX is testing the lower TL and it is critical to watch the reaction here.
Normally, after an overthrow and back-test one would be tempted to go all out bearish, but this market has proved with the current rally off the lows that it can turn seemingly bearish situations around. So a caution stance would be to wait for the lower TL to get broken before announcing the "all clear" for shorts.
Right now, SPX is testing the lower TL and it is critical to watch the reaction here.
Normally, after an overthrow and back-test one would be tempted to go all out bearish, but this market has proved with the current rally off the lows that it can turn seemingly bearish situations around. So a caution stance would be to wait for the lower TL to get broken before announcing the "all clear" for shorts.
