Two weeks ago we identified the 1313 as an important SPX level above which bulls remain in control. That level was successfully tested three times this week and the SPX added another 50 points to the upside.
By doing this, the SPX also completed a rebound from the lower to the upper Hurst Channel:
Chart courtesy of OddsTrader.
The last leg of the rally helped propel the SPX just above the 38.2% Fibonacci resistance level at 1360:
Source: OT Fibonacci
It should come as no surprise that market internals have rebounded and have reached short-term overbought levels:
In summary, the SPX accomplished an impressive rebound this week and is currently bumping against solid Hurst Channel and traditional TA resistance levels. Market internals are overbought and the daily risk reward ratio has increased to more than 2:1 in bears' favor. This suggests that a new period of consolidation/retracement is likely upon us. A further breakout from current levels should stall at 1380, while a breakdown below 1360 will encounter support at 1340.