S&P500 – Approaching critical resistance zone

S&P 500 index is fast approaching critical resistance zone of 2110-2120 levels.

• Struggle near 2100 despite sharp rebound from the low of 1191.7 indicates the index is going to have a hard time taking out critical resistance zone of 2110-2120 levels.
  

• Note the divergence between price (rising channel) and RSI (falling channel).
  

• A day end closing above 2120 may not matter much as we channel resistance lined up around 2128 levels. Only a day end closing above the same would suggest continuation of the rally from February lows.
  

• On the other hand, failure to take out the minor falling trend line could be a sign of exhaustion. This is followed by a break below 50-DMA would suggest the recovery from post Brexit low has ended and the downside 1867 stands exposed.