SPX is reaching the strong resistance area of 4200 and this is the most important upside resistance for a possible bullish reversal in 2023.
This is the area where traders should be careful when taking the trades as it could be a good long or a short trade with a good risk to reward but you should wait a bit.
A confirmed break above 4200 is required for an upside reversal and a continuation higher to 4400. So the next resistance zone is already here 4200-4220.
Short-term this is a perfect place to go short with low risk on a trade and a good reward.
You can take the short trade here with the stop loss just above 4220 as we do not see a possibility of an extension higher in this stage and in this market. By placing this trade your RR ratio would be ideal. In the case of a confirmed breakout above 4220 would open the door for a long trade entry.
