On Monday I discussed the conundrum that traders face in the S&P 500 from a multi-timeframe perspective. After Tuesday’s rally and Wednesday’s flat-lining of the index, the conundrum remains, but with the near-term odds going to the bulls. In essence, the index remains basing above the 1’980 – 1’985 area, which previously acted as resistance.
With the Dow Jones Industrial Average hitting new all-time highs this week, the wind looks to be at the backs of large and mega-cap stocks, which is why I see an upside target at 2’030 for the S&P 500 as reachable within the coming couple of weeks. However, a break below this week’s lows around 1’980 would be a time to likely short this market for a re-test of the early August lows.
Ready my full analysis here: https://www.tradingfloor.com/posts/us-stocks-banks-transport-sector-hold-up-us-indices-1661989