A Technical Look At The S&P 500

$SPY

S&P 500 finished Monday – 3.97 at 2071.19, (-0.19%)

Turning attention to the chart below, it is clear that traders have been encouraged by the so-far mixed earnings and the easy monetary policy from the US Fed and the ECB.

The bias is Neutral to Bullish.

The S&P 500 has added over 200 pts, or over 12%, from its late August low, and stocks are now within striking distance of the all-time high at 2140.

Last week’s break through previous Support-turned-Resistance at 2040 is a particularly promising sign for Bulls.

Both the MACD and RSI are trending higher at multi-month highs suggesting the near-term uptrend is still healthy.

With prices edging back above the 200-Day MA at 2060 Friday, the S&P 500 rise again this week if earnings reports improve and the Fed remains Dovish.

If that happens the benchmark index could approach the all-time highs heading into the beginning of November.

On the Southside

A short pullback this week would not be fatal for Bulls, as long as the index remains above the 2040 mark.

1st resistance is seen at 2,084,5

1st support is seen at 2,068.2

Position: Neutral, standing aside.

The S&P 500, or the Standard & Poor’s 500, is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

The S&P 500 index components and their weightings are determined by S&P Dow Jones Indices. It differs from other US stock market indices, such as the DJIA or the NAS 100 index, because of its diverse constituency and weighting methodology.

It is one of the most commonly followed equity indices, and many consider it one of the best representations of the US stock market, and a bellwether for the US economy. The National Bureau of Economic Research has classified common stocks as a leading indicator of business cycles.

The S&P 500 was developed and continues to be maintained by S&P Dow Jones Indices, a joint venture majority-owned by McGraw Hill Financial.

S&P Dow Jones Indices publishes many stock market indices such as the Dow Jones Industrial Average, S&P MidCap 400, the S&P SmallCap 600, and the S&P Composite 1500. It is a free-float capitalization-weighted index, and has many ticker symbols, such as: ^GSPC, INX, and $SPX.

Stay tuned…

HeffX-LTN

Paul Ebeling