SPX recently made a bottom at 3500, this was accompanied by a positive momentum divergence and a second rally. This one has been very cautious, since this didn't go all straight up, it was short from its previous high, it tested support at 3800 and continued until 4200, to fade again.
The question here is, since this has already made a RBO at 4200, and it found support at the 3800 level, we can infer that it will attempt to test resistance around the 4500 level.
The indicators show a reversal from the Bear into a Bull Market. The momentum is heading upwards, the timing is positive, the volume has been steady and it doesn't show signs of exhaustion nor capitulation. An important support on the 200 Weekly MA was hit and the trend level held strong. In spite of the Red day we saw today I interpret this as a support retesting. If this holds we can expect a Bullish leg.
If the market tries to venture above 4,500 that's the retest of the ATH.
The forecast support is at 4,000; the target at 4,500.
The question here is, since this has already made a RBO at 4200, and it found support at the 3800 level, we can infer that it will attempt to test resistance around the 4500 level.
The indicators show a reversal from the Bear into a Bull Market. The momentum is heading upwards, the timing is positive, the volume has been steady and it doesn't show signs of exhaustion nor capitulation. An important support on the 200 Weekly MA was hit and the trend level held strong. In spite of the Red day we saw today I interpret this as a support retesting. If this holds we can expect a Bullish leg.
If the market tries to venture above 4,500 that's the retest of the ATH.
The forecast support is at 4,000; the target at 4,500.
