S&P’s rally attempt failed near formidable resistance, indicating the path with least resistance remains lower. If the index fails to climb above 2700 this week, then the next stop will be 2600 with the possibility of a brief breakdown below that level.
there is a distinct possibility that a W-shape pattern is forming in the daily chart of the S&P. The pattern it is characterized by positive momentum that bode well for a breakout in the days ahead. We would add upside exposure once the S&P clears 2775 because it would affirm the buy signal that is in place per our proprietary indicators
S&P cleared key technical resistance, breaking out from the one-week congestion trading pattern. However, given the looming resistance near 2780, there is no big commitment to accumulate stocks aggressively at this point