We did expect some sort of rally two weeks ago but did not expect such a big rally. Now the picture is much clearer, see attached charts.

VIX chart indicates that a strong multi-years support is there. Thus VIX is soon due for bounce, which in turn indicates that SPX will reversal anytime from now on.

As traders, short term direction is much more important than longer time frame, and the price of the SPX is the king. So we bring up this SPX multi-months chart. As chart clearly indicates that a giant rising wedge is forming and SPX is near rising wedge resistance now. We may see SPX (bit of further up in the early week) to touch the resistance. Given the end of the month window dressing coming, this is also in favour of few days of minor up as well.

Please note that daily rising wedge chart on SPX is a very reliable chart pattern. It always (in the past) broken to the direction as it is supposed to be (or as it is expected). There is NO EXCEPTION. Will this time be different? We don’t think so. In other words, we should see the sell off soon.
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