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S&P 500 Index (SPX) - Basing Temp Low Close »» Weekly Summary Analysis
By: Marty Armstrong | October 24, 2020

Oct. 23, 2020: S&P 500 Cash Index opened above the previous high and closed above it as well warning of a bullish posture right now. It closed today at 346539 and is trading up about 7.26% for the year from last year's settlement of 323078. As of now, this market has been rising for 6 months going into October suggesting that this has been a bull market trend on the monthly time level which has been confirmed by electing all of our model's long-term Bullish Reversals from the key low.

The S&P 500 Cash Index has continued to make new historical highs over the course of the rally from 2009 moving into 2020, which has been a run of 11 years warning that timing wise a pause remains possible.

This market is still what we classify as a Bull Market given its strong posture above our Monthly to Yearly indicating models while the Weekly is still positive but showing signs of overhead resistance.

DAILY OVERVIEW

The perspective using the indicating ranges on the Daily level in the S&P 500 Cash Index, this market remains moderately bullish currently with underlying support beginning at 341993 and overhead resistance forming above at 350086. The market is trading closer to the resistance level at this time.

The market opened very strong above the previous trading day's high. The S&P 500 Cash Index has opened above the previous high which is a very positive signal of a possible rally closing above the previous session's high.

Bear in mind that we have made a new low this week changing the Weekly Bullish Reversals once this week is concluded. Still, this is an minor Bullish Reversal since we made a higher low.

Up to this moment in time, the market remains neutral on the momentum indicator yet bearish on the short-term trend indicator while the long-term trend and cyclical strength are bullish.

This market is also trading above the bank of eight moving average indicators also suggesting it is still above underlying support at this moment.

This market still has not yet exceeded the last key high of 354985 established back on 10/12. Theoretically speaking, the Downtrend Line technical resistance stands above the market at 353619 which must be exceeded and then hold it as support thereafter in order to imply a breakout. Failure to sustain above this technical trend line will warn that the market has only faded this projection. A closing back below it will warn of a retest of underlying support is likely. Given the strong opening, then as long as today's low holds during the next trading session, the exceeding today's high will signal the rally will continue just yet.

WEEKLY OVERVIEW

On the weekly level, the last important high was established the week of August 31st at 358811, which was up 23 weeks from the low made back during the week of March 23rd. This was a key week for at least a temporary high. We have been generally trading down for the past week, which has been a moderate move of .0378% in a stark panic type decline.

Looking at this from a broader perspective, this last rally into the week of October 12th reaching 354985 failed to exceed the previous high of 358811 made back during the week of August 31st. That rally amounted to only three typical reaction weeks. Right now, the market is above momentum on our weekly models hinting this is still bullish for now.

Weekly Indicating Ranges

Immediate Trend .......... neutral
Short-Term Momentum ...... bullish
Short-Term Trend ......... neutral
Intermediate Momentum .... bullish
Intermedia Trend ......... bullish
Long-Term Trend .......... bullish
Cyclical Strength ........ bullish
Broadest Trend ........... bullish

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