Tonight's update is probably an identical analysis of yesterday's update. The market has deemed the 1937 SPX support line as somewhat important support. It is the buffer zone to a lower floor near 1900.Yet the market has yet to react with any conviction on acting on this support level. Prices meandered around the axis yet again today.
The problem for bulls is if this area of support breaks firmly to the downside, likely 1900-1911 will also break in short time. And then we are in another potential free-fall area to 1867 or well beneath that. So the market is laboring in this upper price area as a result. It rather not go "test" any lower areas if can help it. Yet each little prod beneath 1937 punctures a hole.
Overnight futures on Tuesday night had plunged all the way to the 1910 area overnight and then furiously rallied back above the 1937 support area by the open. So it seems its important.
The overall best counts seem to imply that eventually this area of 1937 support will break. The timing is of course up to the market. There certainly can be one more furious rally to the 1975 - 1980 area to shake out any remaining bears (and to close the open gap down) prior to finally giving way to lower prices.
We shall see.