The support and resistance seems obviously shaping into a rising wedge. In our experience these have a 55-45 probability of breaking to the downside and dropping down to the firmest base which here is about 1340.
However, they do have an annoying tendency to break to the upside, and then the formations on the daily chart tend to have more control over short term pricing action. If it clears resistance at 1380 we could see a short covering panic buy up to 1410.
This would not be inconsistent with this being an important quad witch expiration week.
In summary, the US economy is in a stagflationary recession, and the banks are working overtime with the Fed and Treasury to hide the rot in the crony capitalist financial system after multiple bubbles.
The real economy is about as imbalanced as any command economy can be, especially with the savings reserves of the better part of the world to play with.
In the short term the banks, lacking real world serious business potential, will continue to game the financial markets, so speculator beware.
“Thus, it should be understood that when pro-US figures use the term, 'rules-based international order,' they are not referring to anything analogous to the rule of law. Quite the opposite, they are using Orwellian language to describe a system in which essentially no rules can be established and/or observed, given that the dominant state has the prerogative to violate and/or rewrite “rules” at its whim.” Aaron Good, American Exception