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S&P 500 Index (SPX) - Moving Higher »» Monthly Summary Analysis
By: Marty Armstrong | December 28, 2019

THE ANALYSIS PER THE CLOSE OF Fri. Dec. 27, 2019: S&P 500 Cash Index closed above our indicating ranges on the Daily level. It closed today at 324002 and is trading up about 29% for the year from last year's closing of 250685. As of now, this market has been rising for this month going into December reflecting that this has been only still a bullish reactionary trend. while it is still trading above last month's high of 315426.


Immediately, the market remains unchanged within support still above our system indicators while the long-term trend and cyclical strength are bullish.

During this year, we have exceeded last year's high thereby making a new historical major high to date and we have been in a bull market for a reasonable period of 10 years.

Meanwhile, our technical resistance stands at 307667 which we have already exceeded and are currently trading above this level warning some strength has resurfaced in this market. This level can now offer technical support during any attempt to fall back in this market. Nevertheless, our technical support lies at 202439 which is still holding at this time.

A possible change in trend appears due come February 2020 in S&P 500 Cash Index so be focused. The last cyclical event was a high established back during November. Normally, this implies that the next turning point should be a low. However, to date, this market has already exceeded that previous high established at 315426. This strongly implies we are in a cycle inversion process, which tends to be rather bullish overall. Last month produced a high at 315426 but closed on the positive side and so far, we have exceeded last month's high. We now need to close above 315426 on a monthly basis to imply a further advance to the upside immediately for now. The projected resistance for this week stands at 330713 and we need to close above this level on a weekly basis to maintain any upward momentum.

Critical support still underlies this market at 295221 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 11 months. The previous low of 234658 made during December 2018 on the Monthly level has held and only a break of 285594 on a closing basis would warn of a technical near-term change in trend. The previous high made during November on the Monthly level at 315426 has now been exceeded in the recent rally. We have generated a buy signal so some caution is required.

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