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S&P 500 Index (SPX) - New Pattern Forming »» Weekly Detailed Analysis
By: Marty Armstrong | November 14, 2020

S&P 500 Cash Index closed today at 358515 and is trading up about 10% for the year from last year's settlement of 323078. This price action here in November is reflecting that this is within the scope of a bearish reactionary move on the monthly level thus far. As we stand right now, this market has made a new high exceeding the previous month's high reaching thus far 364599 intraday and is still trading above that high of 354985.

Up to now, we still have only a 1 month reaction decline from the high established during September. We must exceed the 3 month mark in order to imply a trend is developing.

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 Quarterly to Yearly indicating models while the Weekly and monthly levels remain positive but showing signs of overhead resistance.

DAILY OVERVIEW

From a 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 354748 and overhead resistance forming above at 364599. The market is trading closer to the support level at this time.

The S&P 500 Cash Index has bounced to the upside for one session closing above the previous session's high. The broader rally has peaked with the last high established at 364599 back on 11/09 4 days ago. Up to now, we have not yet elected any Bearish Reversals from that high. Clearly, this high was formed after a rally of 6 days.

Currently, the market is trading somewhat bullish on our indicators still showing overhead resistance but it is trading strongly higher up some 2.13% from the previous session low. Our projected target for closing resistance for the next session stands at 366874, we need to close above that target to imply a further advance. Failure to even exceed this intraday warns that the upward momentum is starting to decline. Our Stochastics are also turning upward but are still not in a full bullish position warning the momentum is not exceptionally strong.

Nevertheless, we have elected 1 long-term Bullish Reversal suggesting that the market should now rally from hereat least on a closing basis as long as it holds above 355257 intraday. The wide-ranging long-term resistance remains standing at 315529 demonstrating there remains a broader declining mode in play until this market exceeds that general area. At present, we see overhead projected resistance forming at 364816.

Bear in mind that we have made a new high this week changing the Weekly Bearish Reversals once this week is concluded. Still, this is only a minor Bearish Reversal since we made a lower high. However, we have also made a new monthly high exceeding the previous month's high reaching 364599 which also means the immediate Monthly Bearish Reversals will change once this month is concluded.

At present, the market remains neutral on the momentum indicator yet bullish 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 364599 established back on 11/09. However, an opening BELOW 357312 in the next session would warn that the high of this session may stand at least temporarily.

WEEKLY OVERVIEW

On the weekly level, the last important high was established the week of November 9th at 364599, which was up 7 weeks from the low made back during the week of September 21st. So far, this week is trading within last week's range of 364599 to 351191. 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 364599. Here the market is trading positive gravitating more toward resistance than support. We have technical support lying at 354410 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 7 weeks overall.

Weekly Indicating Ranges

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

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