The State of the Trend
Last week's target band for the SPX range, based on Hurst Channels, was 1344-1355 on the upside, and 1294-1306 on the downside. The high of the index came in at 1345, and the low at 1298.
The conclusion was that for the daily uptrend to continue, SPX needs to claw its way back within the uptrend channel. That did not happen, and the index continues to trade within a downward sloping channel with immediate support at the 1294-1297 level.
The damage can be seen on the weekly chart as well.
Interestingly, however, the same weekly chart shows that the weekly trend is still intact. For that trend to be broken, the SPX needs to drop below 1233-1230. But before that, however, SPX first needs to break below channel support at 1283 and 1276.
Considering the short-term oversold nature of this market, this does not appear likely for next week.