S&P Push Toward 1327-1340 Reasonable
In early January we stated it made sense to see how the S&P 500 acted between 1,285 and 1,340 (see 1:47 mark of video). Today we sit at 1,316, which means no resolution has come yet. We will pay attention with an open mind, but it is always good to have a base case laid out for the short-, intermediate-, and long-term. From a short-term perspective:
- The last push higher in the S&P 500 looked too strong technically for a typical end of a move, which means it would not be surprising to see another push higher, maybe beginning from 1,316ish to 1,293ish.
- If we push higher, resistance may come in near 1,327, 1,330, and then 1,340.
- If the move higher is weaker, using indicators such as RSI, it may be followed by more significant downside, possibly below 1,200.
- Potential areas of support to watch would include 1,285, 1,275, 1,253, 1,210, and 1,192.
A more immediate bullish scenario may follow breaks of 1,330 and 1,343ish. Numerous markets in the United States are looking tired on monthly charts. Thursday’s high was 1,333; so, exercising some patience if we move as high as 1,343 makes good sense.
