S&P 500 – UPSIDE BREAKOUT
Trend: Short term up. Medium term sideways. Long term up.
Strategy: Traders buy on a minor pullback.
The S&P (like the copper price) has formed an inverse head and shoulders (as labelled). The price has broken out above line 1 (the “neckline”) to confirm that pattern. It’s also broken out back above its 50-day moving average. More upside is expected over the short term only.
The daily MACD (on top) is moving above its zero line, which is a bullish sign and technically puts it back into a short-term uptrend.
Traders buy for more short-term upside. Buy ideally on a two-to four-day pullback – eg, to the 1091 level.
The minimum upside target is 1082 – ie, the height of the inverse head and shoulders projected up. Traders take profits there. Medium-term players to also take profits on stocks in general up there.
Place your initial stop-loss as a closing price below 1084 (spot price).