All Roads in the SPX point to 1600, and Possibly 1580

My intermediate-term work on the S&P 500 Index (SPX), as seen through the prism of my channel and Bollinger Band overlay work, show that the price structure has traversed from a 2% overshoot above the upper-channel line on May 22, back inside the channel boundaries, and down towards a test of the lower-channel line, now at 1597.65.

So, too, has the price action traversed from the upper Bollinger Band line at 1691 on May 22, towards the lower Bollinger Band line near 1599, where it resides as we speak.

Bottom Line: There is very strong "gravitational pull" of the SPX towards a test of the lower channel and lower Bollinger Band coordinates, now in the vicinity of 1600-1598, along with the possibility of a 1%-2% lower-channel undershoot into the 1580/70 area, which should be satisfied in the upcoming hours and days.

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