S&P is trapped within narrow trading range as traders are waiting for new catalyst to push stocks higher. Technical pressures are building up as the market dances its way into an increasingly tight trading range. S&P’s 3077 marks the inflection point. A failure to hold above key level indicates a change in sentiment and a much deeper pullback should be expected.
Monday selloff attempt interrupted last week’s recovery rally in the S&P. Although seemingly vulnerable to further short-term weakness, the overall technical backdrop remains positive so sell-off could be shallow because the sideline money will try to fight its way back into the market
Thursday’s spinning top candlestick pattern in the S&P together with short-term overbought conditions suggested that the index is at or very close to a significant near-term top. While seemingly vulnerable to short-term setback, the overall technical backdrop remains positive so it’d be bullish if the S&P can hold above the psychological 3000 level
Thursday’s rally pushed the S&P above the May’s falling trend, signify a bullish breakout and upside reversal. Nevertheless, given the looming resistance near 2869, there is no reason to turn particular bullish until this zone is eclipsed. It will be important to monitor the breakout and retreat behaviors over the next few days to determine whether breakouts are decisive