Banks, transport sector hold up US indices

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.

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