The S&P500 index (SPX) pulled-back yesterday on the strongest 1D red candle since October. A natural technical reaction after weeks of rise-only price action and an overbought 1D RSI that almost hit 83.00. The long-term pattern remains a Channel Up since the October 13 2022 market bottom and as long as the 1D MA50 (blue trend-line) is supporting, it is likely to see one final upward extension towards its top (Higher Highs trend-line).
The two major Higher High sequences (bullish legs) of this Channel have been around +20.50%, extending almost as high as the 2.0 Fibonacci level. As a result we are expecting a minimum of 4930, before any larger correction takes place, unless of course the index breaks above its Channel Up, in which case we will look for a new pattern.
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