S&P 500 Index Breakout Is Short-Term Bullish

Mark Newton

S&P 500 Index Trading Outlook – (3-5 Days): Minor Bullish this week, with tight stops at 2943

Movement over 2960 on the S&P 500 is a mild positive (the index exceeded the minor 1 month downtrend line). But now follow through rallies are needed to avoid late month volatility.

Consolidation on Monday is seen as a positive, and buyable. Any move under 2943 would necessitate hedging.

S&P 500 Index Chart Analysis

s&p 500 index breakout higher rally image bullish october 15

Yesterday provided some minor consolidation to the 100+ point move since last Wednesday which looks to potentially have some minor follow-through this expiration week.

Key resistance lies near 3027 near former highs, and pullbacks should not get back below 2943 this week without turning trends back to negative. We’ll see the extent to which last weeks move can now follow-through. Technically trends have improved slightly, yet breadth concerns on a micro-basis are still something to keep an eye on over this next week.

To have real confidence, it will be necessary to bring about a strong wide-spread participation rally, which im skeptical can happen.

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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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