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:::: S&P 500 Index Cash Summary Analysis
By: Marty Armstrong | August 25, 2018

Analysis for the Week of August 27, 2018

THE ANALYSIS PERSPECTIVE AS OF THE CLOSE OF Fri. Aug. 24, 2018: S&P 500 Cash Index closed today at 287469 and is trading up about 7.52% for the year from last year's closing of 267361. So far, we have been trading up for the past day since the reaction low made on Thu. Aug. 23, 2018, but the key low was made 44 days ago on Mon. Jun. 25, 2018 at 269867. We did close above the previous session's high and the market remains quite strong. (Note: We have included reference to Reversals and Short-Term timing considerations in this Summary Analysis, but please keep in mind this is a preview only - these references will be removed from Summary Analysis and moved to our higher levels of market analysis upon the upcoming launch of our expanded platform service.)

From a cyclical perspective, the broader view which provides a map to the future is most interesting. . Up to now, the market been consolidating trading within last year's range. The direction into the next target due 2021 will be indicated whether we close above or below last year's closing of 267361.

The historical major high took place here in 2017 and we have since penetrated the low of last year intraday.

Meanwhile, our technical resistance stands at 327445 and it will require a closing above this level to signal a breakout of the upside is unfolding. Looking at our Reversal System, our next Weekly Bullish Reversal to watch stands at 295719 while the Weekly Bearish Reversal lies at 279513. This provides a 5.48% 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%. Immediately, we closed the last session trading at the 287469, which is below this level on a daily closing basis at this moment. We need to close above this on a weekly basis to signal a rally is unfolding. Right now, the market is trading some 2.78% beneath that level.

A possible change in trend appears due come this month in S&P 500 Cash Index so be focused. The last cyclical event was a low established back during February. Normally, this implies that the next turning point should be a reaction high. However, the market has made a rebound to the upside so we could see a potential reaction high at that time frame. Last month produced a high at 284803 but closed on the positive side and so far, we have exceeded last month's high. We now need to close above 284803 on a monthly basis to imply a further advance to the upside immediately for now. The projected resistance for this week stands at 289918 and we need to close above this level on a weekly basis to maintain any upward momentum.

The Daily level of this market is currently in a full bullish immediate tone with support at 285976. Thus far, we are still within a reactionary phase upone daily session.

On the weekly level, the last important high was established the week of August 20th at 287616, which was up 28 weeks from the low made back during the week of February 5th. So far, this week is trading within last week's range of 287616 to 285062. Nevertheless, the market is still trading upward more toward resistance than support. A closing beneath last week's low would be a technical signal for a correction to retest support.

This market has made a new historical high this past week reaching 287616. Here the market is trading positive gravitating more toward resistance than support. We have technical support lying at 286871 which we are still currently trading above for now.

Right now, the market is above momentum on our weekly models hinting this is still bullish for now as well as trend, long-term trend, and cyclical strength. Looking at this from a wider perspective, this market has been trading up for the past 20 weeks overall.

Currently, this market remains in an uptrend posture on all our indicators looking at the weekly level. We see here the trend has been moving up for the past 28 weeks. The previous weekly level low was 253269, which formed during the week of February 5th, and only a break of 280249 on a closing basis would warn of a technical near-term change in trend. The last high on the weekly level was 287616, which was created during the week of August 20th, and has now been exceeded in the recent rally.

Critical support still underlies this market at 244654 and a break of that level on a monthly closing basis would warn that a sustainable decline ahead becomes possible. Nevertheless, the market is trading above last month's high showing some strength. On a broader perspective, this market remains in an uptrend posture on all our indicators looking at the monthly level. We see here the trend has been moving up for the past 29 months. The previous monthly level low was 181010, which formed during February 2016, and only a break of 269199 on a closing basis would warn of a technical near-term change in trend. The last high on the monthly level was 287287, which was created during January, and has now been exceeded in the recent rally.

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