The stock markets next momentum move will be a bullish momentum move…
The S&P 500 Index has continued to make new historical higS&P 500SP500 However, this last portion of the rally has taken place over 10 years from the last important low formed during 2009.
This market is still what we classify as a Bull Market given its strong posture above our Quarterly to Yearly indicating models while the Weekly and monthly levels remain positive but showing signs of overhead resistance. Currently, this market has been rising for 9 years going into 2019 suggesting that this has been a bull market trend. As we stand right now, this market has made a new high exceeding the previous year’s high reaching thus far 3028 while it is still trading above last year’s high of 2941.
The current Daily Breakline rests at 2959. A penetration of that level intraday can lead to a sharp panic type decline if sustained.
This market on the quarterly level has been making new highs since the last low established 2 quarters ago which has been a series of successive advances. The last 4 highs have been progressively making higher highs implying we have had a bullish trend in motion for the past 32 quarters. The last high was made during the Second Quarter of 2019. Technical resistance stands at 3052.92 and it will require a closing above this level to signal a breakout to the upside. Nevertheless, our technical support lies at 2613 which is still holding at this time. At this moment, the market remains technically neutral, so caution is advisable.
Watch the Daily Chart for a hint of the next directional move in the current longer-term bullish trend. Critical support still underlies this market at 2722.26 and a break of that level on a monthly closing basis would warn that a serious sustainable decline ahead becomes possible.
Even politically driven a short term correction downward, any decline is a buying opportunity and a bear market is not in the near future.
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