The SPX looks like it wants to continue the grind higher. There has been a hint of positivity in the air as talks between the US and China appear to be moving onward and hopefully upward.

While at the same time, it looks more likely that the US will not be raising rates as sharply as many had predicted.

This morning the ES is grinding higher also in AH trading and currently sits 0.4% higher on the session to date. Asian markets are also up and there is a fair bit of buying goin on today.

Technical Outlook

The SPX has now held 2500 resistance turned support and there is now a decent chance that we push higher into the 2600 level.

If price doesn’t break above 2600, then I think we might enter a consolidation period. All the analysis suggests more downside ahead and that’s generally the way markets move.

Between volatility and calm. Price needs to reload before and more big moves in either direction after what was a pretty crazy period of selling into the end of the year.