SPX Tech analysis by Simon Kazinsky on 12:36 May 17, 2018 EST
I reported on my previous technical analysis for the Standard and Poors 500 index more than a month ago I expected tail winds for the index after bouncing from support. The strategy has worked.
The chart posted back then showed my expectations for the trajectory once the index refused to break below important multi year support and we are on course:
The index trades at the time of writing in the region of 2,730 and I expect it to keep rising to above 2,800 and with a strong possibility to reach above 2,900 in the coming weeks. The ideal target would be around 2,940 were a multi year fibonacci level lies. Alternatively, a break in the coming days below 2,700 would dent my confidence that a batman pattern on the weekly chart is on the making and taking initial short positions could be contemplated.
My long term view for the index is still very bearish but it is not worth to fight the uptrend. Technicals prevail.