Can we get to 2300+ on the S&P500?

 The below is an excerpt of this week’s weekly digest available to premium members only.

“The chart in Figure 1 below we shared with our members a while ago and it’s a good chart to start with as the breakout in 2013 of what was in essence a decade long consolidation between SPX800 and 1575 (from 1997 to 2009) should simple target SPX2350. Note the gray uptrend arrow since the 2009 low: price remains above it and thus the long term trend is up.

Figure 1. SPX monthly chart. Decade long consolidation breakout targets SPX2350ish

bull flag 3

When we zoom in to the price action YTD, using a weekly candlestick chart, we simply see two bull flag patterns (Figure 4 below). The market went sideways March-June between SPX2000-2100 (green rectangle); flushed out the weak hands during Brexit (black arrows) and then quickly moved to new ATHs. Since mid-July we’ve had a sideways market between SPX2160-2190 (Red rectangle). Hence, can we expect a quick flush out again before the market quickly moves to new ATHs once again? Bottom line: we have two shorter term bull flag patterns that both target to around SPX2325; very similar to the target given in Figure 1.

Figure 2. SPX weekly chart. Two bull-flags (green and blue) both target around SPX2325

bull flag 1

Lastly, our monthly TI chart… In summary: …, the weight of the evidence clearly is in favor or more upside. Short term downside (…) can certainly not be excluded but will only be either a buying or a hedging opportunity.”


3 thoughts on “Can we get to 2300+ on the S&P500?

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