Despite Today's Strength, SPX Still Needs to Prove Itself

What is particularly illuminating about the enclosed candlestick version of the cash SPX chart is that it clearly shows that today’s price range "fits" inside of yesterday’s price range.

In technical jargon, today's action so far represents an "Inside Day," meaning that the low and the high fit inside of yesterday's low-to-high range.

As powerful as today's upmove is, its technical significance would be considerably more meaningful (to the bulls) if the SPX climbs above Wednesday’s high at 2058.86.

In the absence of a climb above Wednesday's high, today's "Inside Day" action does not in and of itself reverse the near-term downtrend off of the Dec 5 high at 2079.47.

In fact, what today's action represents is a "rest/digestion" period within the still intact near-term downtrend.

All eyes on 2058.86 for the rest of today's session. Last is 2053.10...