The past 3 weeks has seen the S&P 500 Index zoom higher by more than 200 points. The rally has brought the index back to within 3 percent of its all-time highs and has the bulls feeling much better.
I thought this would be a good time to review what’s happened in the stock market since my last post here while providing a new market update using my Fibonacci method. I’ll also confirm my upside price target.
Feel free to reference my previous analysis of the S&P 500 (from September). Since that post, here’s what happened with the main stock market index:
- On September 29th, price looked to test the previous low of 1867.01, putting in a low of 1871.91.
- Price is up +10.85% from the current low; the close Friday, October 23rd being 2075.15.
- An open gap has been closed at 2035.73.
- Two nearby open gaps are at 2079.61 and 2096.92
- Price is only 2.87% from the all time high.
S&P 500 Index – 10 year, weekly chart
S&P 500 10 year, weekly chart
Going forward, I expect the two open gaps to be closed with the closing of the 2nd gap at 2096.92 putting us within striking distance of the all time high. I would expect some resistance at 2134.72 and still maintain my target of 2249.75 as shown in the 2 year chart below. I’ve also highlighted in green where support has been tested and held.
S&P 500 Index – 10 year, weekly chart
S&P 500 2 year, daily chart
Thanks for reading and always use a stop !
dave
This post originally appeared on See It Market
