SPX Rejection of 0.382 Fib and Bear Flag Forming

SPX has rejected the 0.382 fib level from our Jan 4 high to our Jan 24 low. This often signifies a failed reversal attempt and buyer exhaustion, thus forming a higher low within the current downward trend.

SPX also appears to be forming a bear flag, further strengthening the downtrend thesis.

Stay frosty out there.