SP500 Chart update from November 7th (SP500 was @ 2085 – Red ellipse) in which I wrote :
« SP500 Chart technical rationale for a bounce from friday’s closing…. » , « …Targets 2120 @ thereafter 2140 – 2150 range . Should 2150 be broken up on a daily closing basis, the US index will probably hit new highs and go beyond 2200…. ».
Market has gone from Oversold territory at 2085 on November 4th to Overbought at last week closing (2213) and crossed previous all time high at 2193 in-between.
I would remain neutral to bullish from here and any reaction down to 2195 – 2200 would be normal and healthy . A close below previous all time high (2193) would support more immediate downside. We cannot exclude this latter possibility given the fact that 50%+ of SP500 sub-sectors (See table below) are well in overbought territory .
2193 on a closing basis IS KEY.
Source : The Bespoke Investment Group