SPX Has Hit Resistance and Dropped: Next Few Days Are Telling. Feb 3rd and 4th Plan

In yesterdays plan, I was looking for a pop up into the 4570s (with overthrow possible to 4600) and then pullback with the 4520 zone first target and played out well, albeit with a little intraday chop first (wouldn’t be ES otherwise) that did not violate that upside resistance. Facebook earnings were the catalyst for the drop but as usual, it occurred right off a significant resistance level which I’d be referencing for days.

Today I’m going to talk about just why this level is so important (it is a massive technical “confluence” zone) and explain why if a serious leg down is starting, it has to be here.