From September 7 on the SPX Aad SSO:
" In both of these charts, the lower trendlines now are validated trendlines with yesterday's third "hit," confirming that they are support. If they get taken down, it suggests at least some kind of retest of the lows."
The SPX violated the bottom of The Channel by about a point on Friday, but closed within it by a few points, settling at the lower end of the day's trading range. This morning, the index is indicated to Gap Down, below The Channel.
The SSO held inside its Channel on Friday, but currently is indicated at BID: 38.67...ASK: 38.76, well below The Channel, and bracketing the September 6 low of 38.71, which was a trendline validation of support.
If the SSO opens as indicated, first resistance would be 39.244-39.25, which would become DOUBLE resistance. The former is where the broken bottom of The Channel comes in today; the latter was Friday's low. The Bears will want to defend that level on any reflex rally.
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