The 2Q2023 was a strong one for the SPX with index gaining roughly 6% in the quarter and it has started the 3Q2023 on the front foot which allowed the index break above the 61.8% Fibonacci retracement level of $4,260. The strong start to 3Q2023 is off the back of a strong NFP’s print and the end to the monthslong political battle in Washington. President Biden signed the Fiscal Responsibility Act on Saturday which will suspend the US $31.4 trillion debt ceiling for 19 months.
The 1Q2023 saw the index complete an ABC corrective wave and the index looks geared for a 5-wave wave impulse wave which could see the index climb back to its all-time high levels around $4,800.
The index is currently sitting in the red resistance range between $4,320 and $4,260 and a break above this range will allow the index to climb higher into target range between $4,600 and $4,640. I however expect the index to make a bullish pull back before making another move higher. The daily MACD indicator is still holding a strong buy signal, but the RSI is creeping closer towards the overbought zone which supports my expectation of a possible pullback.
The critical support level to watch is the 50-day MA, currently at $4,128. A break below this level will see the index test the bottom of the upward trend line and a break below the trendline will invalidate this idea and the 5-wave impulse.
The 1Q2023 saw the index complete an ABC corrective wave and the index looks geared for a 5-wave wave impulse wave which could see the index climb back to its all-time high levels around $4,800.
The index is currently sitting in the red resistance range between $4,320 and $4,260 and a break above this range will allow the index to climb higher into target range between $4,600 and $4,640. I however expect the index to make a bullish pull back before making another move higher. The daily MACD indicator is still holding a strong buy signal, but the RSI is creeping closer towards the overbought zone which supports my expectation of a possible pullback.
The critical support level to watch is the 50-day MA, currently at $4,128. A break below this level will see the index test the bottom of the upward trend line and a break below the trendline will invalidate this idea and the 5-wave impulse.
