The S&P 500 Index and broader stock market tried to pull back Tuesday but once again finished well off the lows.
It’s also important to note that the S&P 500 did not undercut the prior days low and has not violated the uptrend.
When taken together, the stock market has suffered no technical damage. Price trends also remain positive though the stock market is getting overbought here. Today’s chart is of the S&P 500 Index E-mini Futures and shows the steep up-trend line. Though overbought, I think the S&P 500 is likely press higher into Thursday/Friday of this week.
Energy and Financial stocks should continue to lead the charge higher, though both are nearing resistance based on price and time, and structurally are in the final wave of rally from late October.
Barring a reversal, a test of the prior highs looks like a definite possibility into end of week.
Zooming out, a move below 3505 is necessary to turn things negative.
Twitter: @MarkNewtonCMT
The author may have a position 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.
