The S&P is in a broad underlying uptrend. This is confirmed by the market being above an uptrend line (from 9 October 2013) and above three moving averages (50, 100 and 200-day moving averages).
Prices briefly turned lower after hitting an all-time high (1887.00) on March 7 but found support at 1830.25. This is the area where the 38.2% Fibonacci retracement level of the upleg from Feb 5 (1731.75) to March 7 (1887.00) lies. The 50-day moving average also coincides with this level and therefore is seen as a strong support level.
After bouncing off support, prices rose to 1873.50 where resistance was found at the lower channel line (of the rising channel from Feb 13 to March 7). Failure to break through this resistance could possibly see a move back down towards the 50% Fibonacci at 1809.46. The MACD has flattened out while RSI is just below 60. The stochastic is approaching overbought territory. Aside from the technicals, the fundamentals are not that strong enough to support such a bullish momentum and would likely call for a correction lower.
Alternatively, a successful breach above the lower channel support-turned-resistance line around the 1873.50 level would push prices towards the March 7 all-time high of 1887.00.
The S&P is in a broad underlying uptrend. This is confirmed by the market being above an uptrend line (from 9 October 2013) and above three moving averages (50, 100 and 200-day moving averages).
Prices briefly turned lower after hitting an all-time high (1887.00) on March 7 but found support at 1830.25. This is the area where the 38.2% Fibonacci retracement level of the upleg from Feb 5 (1731.75) to March 7 (1887.00) lies. The 50-day moving average also coincides with this level and therefore is seen as a strong support level.
After bouncing off support, prices rose to 1873.50 where resistance was found at the lower channel line (of the rising channel from Feb 13 to March 7). Failure to break through this resistance could possibly see a move back down towards the 50% Fibonacci at 1809.46. The MACD has flattened out while RSI is just below 60. The stochastic is approaching overbought territory. Aside from the technicals, the fundamentals are not that strong enough to support such a bullish momentum and would likely call for a correction lower.
Alternatively, a successful breach above the lower channel support-turned-resistance line around the 1873.50 level would push prices towards the March 7 all-time high of 1887.00.
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