SPX is testing strong upside resistance at 4007 and is being rejected by this level so far. Ahead of us is the FOMC decision which can change everything in a short time.
Only a confirmed break above 4007 will lead to an extension higher and a continuation above 4030 to test the 4200 key level for this year again.
Any short-term confirmed break below 3960 would lead to a bearish swing lower to 3700 again, for which we give a little more weight than an upside break above 4000.
Medium-term this could be a perfect low-risk short trade but we reserve the right to switch to a long trade in case of a break above 4000.
You can take the short trade here with the stop loss just above 4020 as we see a higher probability of a swing reversal lower. By placing this trade your RR ratio is 3. In the case, you are stopped you can reverse your trade to a long trade, especially in the case of a confirmed break above 4020.
