Where's SPX Heading in Short Term ?

Over the last 5 trading sessions, SPX trended downwards.
This gives rise to the "feeling" that major US indexes should continue with this trend. It might, or it might not. Frankly, I don't know, but if you know, please tell me :)

Let's then review the TA of SPX daily chart below....



There are 3 signals of particularly interests to me :

a) SPX index dipped below the trend support trend line. There's no argument here that this is a pretty bearish signal. If that support had held up, my TA view would be bullish bias, undoubtedly.

b) However, life is not so simple and so is TA. Trendline supports/resistances are just but ONE indicator. And in this case, there's a second support that must be breached, before I begin to be a whole lot bearish. This is the support at ~850 region, established by in Dec 2008. If you scrutinize the chart, you will notice that on 2 occasions, this low was tested and index held up. Everyone and everyone who is a TA practitioner, will be looking at this level, and determine the next course of action.
So, if we soon test and fail to break this ~850 region support, lorryloads of traders, may decide to go Long for the short term.

c) Giving some indication on the strength of the downward movement over the last 5 sessions, we turn to MACD. Clearly, this daily MACD shows that momentum is just beginning to build along the downward thrust. BUT, it is not if you again look under the magnifying glass, RSI tipped just ever so slightly upwards. This helps mitigate MACD's suggestion for a further downswing. Overall, we must respect that MACD is suggesting some continuation on the downside.

Overall, I would need to see how 850 region holds up or not. But for now, I wont be surprised if SPX will trend toward 850 region in the very short term.

If it successfully supports SPX from falling, I will begin looking at bullish bias positions for Feb, while keeping in mind the limited upside potential, given murky outlook on economy.

If SPX breaks support at 850 with authority, which means, i will need at least 2 - 3 continuous downside sessions to confirm this, obviously, I will turn rather bearish and strategize my trade accordingly.

I welcome you TA comments, especially, if you disagree with any of my comments above.

I wish all HUat HUat !!!!

Kennynah