The S&P 500 index continues slowly to grind higher and it seems that now it is aiming for a possible test of the previous all-time high level. The US index is still trading above its short-term upwards moving support line, taken from the low of the 2nd of July. Thus, as long as that line remains intact, we will aim for higher levels, at least for the short-run.
The S&P 500 could easily push a bit more to the upside, where it could meet its resistance from the 2911.00 area, or even the 2916.70 barrier, marked by the all-time high, achieved not that long ago, on the 29th of August. If the bulls remain strong and break through that level, this could open the path for the S&P 500 into the unchartered territory. Certainly, let’s not exclude a possibility for the index to retrace a bit to the downside, where the aforementioned upside support line could be seen as good bouncing ground for the bulls to step in again and drive the S&P back up.
On the downside, a break below the previously mentioned upside support line could force us to abandon the bullish case, but a drop below the 2862 hurdle, marked by the low of the 7th of September, is the move that may signal a change in the near-term trend. This is where more bears could start joining in and potentially driving the S&P 500 towards the 2844.00 obstacle, which was the low of the 22nd of August. Another break below 2844.00 could open the path to the important support area between the 2790 and 2802 levels, where the first held the price from dropping lower from mid-July this year.
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