Not all support/resistance levels are equal. Two or more support/resistance points are stronger than one point, requiring more market force to break through. Usually great market force produces longer and more sustainable rallies/declines.
Last week the SPX broke above the big .618 retrace level of the January to February decline. Additionally there was a double top just below the .618 resistance level. The subsequent move above both Fibonacci and chart resistance implies a move up to the next resistance area in the 2800 to 2801 area.
The .786 retrace level of the SPX January to February decline is at 2800.07. The .786 retrace level is usually very weak in stopping market movements, therefore I only use the .786 retracement when there is another support/resistance point very close by. In this case SPX chart resistance is at 2801.90. There's a very high probability this level could be reached next week possibly on 6/11/18. If the SPX can move above 2801 there's a high probability the major top at 2872 could be reached later in June.
Note, the daily RSI is only at 64% still below the overbought zone that begins at 70%. This is another clue the rally could continue.
Declining volume during a rally is usually a bearish signal in many markets - not the stock market. Note the volume moving average line has been declining for at least two months, yet the SPX is still rising. Don't get fooled by declining volume.
Major SPX resistance is in the 3050 zone which could be reached in June. Please see my prior posts on this subject.
Mark
Last week the SPX broke above the big .618 retrace level of the January to February decline. Additionally there was a double top just below the .618 resistance level. The subsequent move above both Fibonacci and chart resistance implies a move up to the next resistance area in the 2800 to 2801 area.
The .786 retrace level of the SPX January to February decline is at 2800.07. The .786 retrace level is usually very weak in stopping market movements, therefore I only use the .786 retracement when there is another support/resistance point very close by. In this case SPX chart resistance is at 2801.90. There's a very high probability this level could be reached next week possibly on 6/11/18. If the SPX can move above 2801 there's a high probability the major top at 2872 could be reached later in June.
Note, the daily RSI is only at 64% still below the overbought zone that begins at 70%. This is another clue the rally could continue.
Declining volume during a rally is usually a bearish signal in many markets - not the stock market. Note the volume moving average line has been declining for at least two months, yet the SPX is still rising. Don't get fooled by declining volume.
Major SPX resistance is in the 3050 zone which could be reached in June. Please see my prior posts on this subject.
Mark