As discussed this weekend tomorrow is all about Janet and one magic word. What does the monthly $SPX chart tell us at this stage?
Basically everything remains on full, standard program. The monthly 5EMA and 8MA remain the seemingly permanent support levels that continue to propel the market higher. As long as this trend stays in place bulls have precious little to worry about:
Based on this trend, the upper trend line, and the upper monthly Bollinger band an upside target range of 2150-2170 may well be in the cards if the Fed remains dovish and “patient”.
The flip side would be a change in trend with an aggressive move below the monthly 8MA and, more importantly, a monthly close below it. Even the aggressive move down in October was rescued above the 5EMA. A move below the 8MA could invite a quick visit to the lower trend line and a monthly close below the 8MA could signal a change in a multi-year trend.
Categories: Daily Market Brief