SPX: Bullish Trend Remains Intact
Alexandros Yfantis | Dec 29, 2014 08:38AM ET
The bullish trend remains intact in the S&P 500. After completing a corrective pull back at the 38% retracement of the rise from 1820 to 2079, bulls have managed to push the market to new all time highs sending the message across all market participants that they continue to have the upper hand. There are however some weakness signs that could justify a small pull back towards 2050-2040 but my overall longer-term view remains fully bullish on equities.
The longer-term bullish trend remains intact as prices remain inside the upward sloping channel and the Ichimoku cloud indicators remain fully bullish with critical support at 2020.
Short-term support at 2085-80 is critical for the short-term up trend. An hourly close below 2085-2080 will signal that a short-term top is in and that we should expect a move towards the 38% retracement where is the 1st important support and a possible upward reversal level for the resumption of the up trend. At 2045-2050 we could see another reversal to the upside similar to the one from 1972.
So we look out for a break below 2080 that will signal a short-term correction has started. The correction target to buy again is at 2045-2050. If we hold above support, we should expect 2100 to be reached soon. I remain bullish not only for the short-term but also for the longer-term as the break out pattern in S&P implies that even stronger upward waves should be expected.
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