S&P500 update

The timing of the recent drop after the QE news was very suspicious. It came right at the top of the green channel which was the fourth hit. The fourth touches are always a reason to be cautious. The final downturns at resistances and support breaks very often happen at the fourth hit. This green channel support break was not ideal because it broke down at the third hit. I was expecting one final push towards 1700 but the response to the negative news was very overwhelming. Will it still reach 1700? We will see, but first it has to break the resistance of the orange channel which I showed inside the red ellipse. That resistance was already tested once since yesterday. If that resistance is broken upwards, I would be very careful with shorts. Otherwise, I expect another hit at the lower band of the orange channel which will be the 4th hit! Hope it helps.