Bullish on the S&P

Looking at the technical picture on the S&P 500 (the ‘US 500 cash’ market on our web-based platform), it is showing a fairly positive picture.

Source: Bloomberg

Firstly, if we take the timeframe out a touch and look at the weekly chart, it is clearly bullish with price looking to print a higher high. A break through the prior high of 2022 could see the channel top come into play at 2072 (a 3% move). Given this is a weekly chart, we would of course need to see the index close above the prior high on a weekly basis.

As you can also see, the 50-week average (currently at 1900) seems to be good support. So as long as the US index can hold this level, I would prefer to hold a bullish bias.

If we hone in and look at the hourly chart, the rising trend drawn from the 21 October high has been broken and we could see a move down to the 2000 level. 2000 is also horizontal and trend support, so this could be a level at which the ‘buy the dips’ crowd return to the market before we see a final push back above the 2022 level.

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