On Dec. 30, we made the following comment:

On mobile, view chart on landscape.

As per the chart below, the SPX failed to decline below 2350, a level that lies on the upward sloping support line that held the two prior major declines since March 6, 2009; this support line stopped the 20% decline in the summer of 2011 and it stopped the 12% six-day mini-crash in August 2015. In 2018, like in 2011 and 2015, once the SPX reached the support line, it bottomed, reversed its losses, and started to rally, always remaining above the rising support line. This price action is bullish, indicating strength rather than weakness, so it would appear that the bull market since March 2009 remains intact. If the bull market remains intact, the SPX should rally to 3150.