You can see a clearly defined uptrend on this 4 hour S&P 500 chart. The price action has become wedged in a rising channel between 1620 and 1636. A rising wedge or channel is generally a bearish technical warning combined with a bearish engulfing candle that is forming over this timeframe the market looks to be turning lower. A reverse and a break to the downside of the 1620 area could expose the 1612 level which is the 23.6% Fibonacci retracement of the rally from 1537-1636. An additional break of this would then target the psychological 1600 level then 1597 which is a previous high and the 38.2% Fibo of the rally up.
1597 is definitely a level a lot of Bulls will be looking to take a speculative long trade at.
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