We like to keep things simple at Intelligent Investing, and one way to look at this is by using price-only charts. Below is the YTD chart of the S&P500, with the important S/R (support/resistance zones) as well as trend lines.
With price finding support yesterday at the upper end of our SPX 2000-2020 S/R zone, it launched itself deep into the next zone (SPX 2040-2060) and we expect that to be broken too. In fact, price found support yesterday at the intersection of the upper, parallel, dotted ascending black trend line and the dotted descending orange trendline. Price closed today above the upper orange descending trendline (blue and orange arrows, respectively). Hence, the key levels to watch going forward is SPX 2020 and, since resistance may become support, this orange trendline will be important going forward too (now at SPX 2048)
Now that price has broken above the upper ascending dotted black trend line and used it as support we can instead use different, bullish symmetry: the green arrows. The black dotted trend channel is about 120p wide (1872->1991). Hence the break above today would target: SPX 2020+120=2140. This coincides well with our minimum major 3 targets using Fib-extension calculations of the major and intermediate waves (wave count and price targets available to premium members only).
Prior to this we used the break out from SPX 1953 on October 5 successfully to set a target of SPX 2037 target (1869->1953=84p, 1953+84=2037). Two days ago the S&P500 hit 2039 and reversed, albeit only for a meager 22p 😉 Nevertheless, we continue to use sophisticated techniques and simpler symmetry-breakouts to determine trade-able, low risk, high reward and profitable targets. This was indeed an easy 80+ points using this tool. If you want to use our insights too, please sign up here. Hurry, as prices for new members will increase starting November 1 .