As I've been discussing with Premium Members over the past week or so, the S&P 500 is starting to get into a position for a nice move higher, potentially as high as 1440.
On the chart below let's notice a few key parts. First, the 50% retracement of the December lows to the February Highs, which held. Next, the 50% retracement of the March lows to the recent April highs, which held. Next, note the inverse head & shoulders pattern in the SPX since February. This particular pattern could run as high as 1440 if it were to play out in a textbook fasion…which of course things rarely do.
My upside targets are 1360, 1380 (where I will take a good amount of long exposure off), and then 1420.
Should we stall somewhere around 1440 – 1450 it will be key to watch how the 1300 area and ultimately 1250 aread hold up. Should we then slide into a pattern of lower lows we could conclude that the February and April highs marked a double top.
