On The Fly: Weekly technical notes for S&P 500

The S&P 500 (SPX) is set to finish the week largely flat. As noted throughout the week, there is a potential bullish flag on the daily chart that at time of writing is close to triggering. A move and close above 2734 today would see the pattern become active. If price were to close in the 2725-2734 range, there would be one final chance for the pattern to trigger on Monday if markets opened higher and closed higher. Without that, the pattern is likely to fail through time alone and this potential bullish flag will simply be what it already is - a bearish price channel. Support and resistance levels of note have not changed. A band of support in the 2700-2710 area has held well. Equally resistance in the 2740-2750 area has been just as firm.