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In February of 2018, the S&P created a low, which was tested again as support a couple of months later. These two lows became the lows of a new trading range that was forming, with support at (1).
Weakness in December saw support line (1) break, which was a negative for the broad market.
The rally of the past couple of weeks has the S&P kiss on support as new resistance at (2), as momentum is nearing oversold levels.
For the first time ever, the S&P is now kissing old support as new resistance at (2). What the S&P does at this important kiss of resistance, is to send a very important message to the start of the new year.
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