Can SPX500_m bears keep up their momentum?

<p><strong>By <a href="http://investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a> </strong></p>
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<li><span lang="EN-US" xml:lang="EN-US">SPX500_m flirts above weekly resistance ahead of US CPI<br />
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<li><span lang="EN-US" xml:lang="EN-US">Bears in control on weekly timeframe </span></li>
<li><span lang="EN-US" xml:lang="EN-US">Three potential targets identified.</span></li>
<li><span lang="EN-US" xml:lang="EN-US">Bearish scenario invalidated If 4401.1 price level is broken</span></li>
<li>Will key US inflation report support SPX500_m bulls or bears?</li>
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<p><span lang="EN-US" xml:lang="EN-US"><strong>The SPX500_m seems to be in the process of a technical bounce on the daily charts with prices flirting above key weekly resistance ahead of the US CPI report later today. </strong>Nevertheless, bears remain in firm control on the weekly charts. Even though the current correction wave is strong – it is approaching a point of possible resistance at the trend line. </span></p>
<p><img decoding="async" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/SPX500_mWeekly_12102023_S.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="027cf1b8-f31e-470a-97c9-b50758c47fe2" data-src="/s3-static/users/user17/SPX500_mWeekly_12102023_S.png" /></p>
<p><span lang="EN-US" xml:lang="EN-US">On the daily timeframe, prices are at a weekly resistance turned support level and the bullish strength is undeniable with an extended correction wave in the current down trend clearly visible. This leaves the field open for either bullish continuation or a bearish intervention and the possible start of a new impulse wave in the down trend. Since both the weekly and the daily trend is downwards, a more detailed bearish opportunity is discussed on the H4 chart. </span></p>
<p><img decoding="async" loading="lazy" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/SPX500_mDaily_12102023_S.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="9e2ca565-00db-4585-9512-e6c835f34520" data-src="/s3-static/users/user17/SPX500_mDaily_12102023_S.png" /></p>
<p><span lang="EN-US" xml:lang="EN-US">The H4 chart reveals more details with a strong bullish trend in progress. As mentioned above the higher time frames as well as the effect on traders based on the CPI news event might cause the bears to take over again. </span></p>
<h4><span lang="EN-US" xml:lang="EN-US">Attaching a modified Fibonacci tool to a trigger level near a last bottom at 4343.3 and dragging it to a stop loss just above a last proper swing at 4401.1, three possible </span><span lang="EN-US" xml:lang="EN-US">targets can be established:</span></h4>
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<h3><span lang="EN-US" xml:lang="EN-US">The first possible target at 4314.3 (Target 1) with risk management in sight. </span></h3>
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<h3><span lang="EN-US" xml:lang="EN-US">The second potential price target at 4273.9 (Target 2) – located just before weekly support level. </span></h3>
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<h3><span lang="EN-US" xml:lang="EN-US">The third and last price target is feasible at 4236.3 (Target 3) if bears can break through the weekly support level. </span></h3>
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<blockquote><p><span lang="EN-US" xml:lang="EN-US">If the price at 4401.1 is broken, this scenario is no longer applicable. </span></p></blockquote>
<p><img decoding="async" loading="lazy" class=" lazyloaded" src="https://www.forextime.com/s3-static/users/user17/SPX500_mH4_121020223_S.png" alt="" width="1000" height="800" data-entity-type="file" data-entity-uuid="d6977a17-ec31-4a28-829a-b9f223d2bf72" data-src="/s3-static/users/user17/SPX500_mH4_121020223_S.png" /></p>
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<p><img decoding="async" loading="lazy" class="size-full wp-image-54242 alignleft" src="https://www.investmacro.com/articles-analysis/wp-content/uploads/2014/07/Forex-Time-Logo.png" alt="Forex-Time-Logo" width="262" height="90" /><strong>Article by <span><a href="https://www.investmacro.com/contributors/contributor-profile-forextime/">ForexTime</a></span></strong></p>
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