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:::: S&P 500 Index Cash Summary Analysis
By: Hedgopia | May 12, 2018

Analysis for the Week of May 14, 2018

WRITTEN VIEW PER THE CLOSE OF Fri. May. 11, 2018: S&P 500 Cash Index closed today at 272772 and is trading up about 2.02% for the year from last year's closing of 267361. So far, we have been trading up for the past 6 days since the low made on Thu. May. 3, 2018. Relying on our Reversal System, our next Weekly Bullish Reversal to watch stands at 276340 while the Weekly Bearish Reversal lies at 257823. This provides a 6.70% trading range. Turning to the broader Monthly level, the current Bullish Reversal stands at 329920 while the Bearish Reversal lies at 244654. This, of course, gives us a broader trading range of a 25%.

The last event was a low established during 2016.

A possible change in trend appears due come this month in S&P 500 Cash Index so be focused. Last month produced a low at 255380 and so far, we have exceeded last month's high. We now need to close above 287287 at month-end to imply a technical reversal of trend to the upside for now.

Looking at the near-term level, the market has closed up 47.7% from the last cycle low established during 2016, which has been only a 1 year rally from that event. Turning to the long-term perspective, the market has still closed on the Yearly level up 4286.5% from the strategic low established during 1974, which has been a 43 year rally from that key event.

The Daily level of this market is currently in a full bullish immediate tone with support at 268335. To date, this decline has been down for six daily sessions.

On the weekly level, the last important low was established the week of February 5th at 253269, which was down 2 weeks from the high made back during the week of January 22nd. We have been generally trading up for the past 5 weeks from the low of the week of April 2nd, which has been a move of.0670 percent.

At this moment, this market is in a downward trend on all our indicators looking at the weekly level. Bearing in mind the direction of this trend, we have been moving down for the past 8 weeks. The last high on the weekly level was 280190, which was created during the week of March 12th. The last weekly level low was 253269, which formed during the week of February 5th, and only a break of 259462 on a closing basis would signal serious correction ahead. However, we still remain above key support 262245 on a closing basis.

Critical support still underlies this market at 244654 and a break of that level on a monthly closing basis would warn of a sustainable decline ahead becomes possible. Nevertheless, the market is trading above last month's high showing some strength. Overall on a broader basis, looking at the monthly level on our models, this market has been in a rising trend. We see here the trend has been moving up for the past 26 months. The last monthly level low was 181010, which formed during February 2016, and only a break of 258589 on a closing basis would signal serious correction ahead. The last high on the monthly level was 287287, which was created during January.

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