The SPX, although rallying in recent weeks, is finding some resistance up around record
ground of 1650. The market has spent nearly two months trying to break and hold above
this level. SPX Daily Chart The new move up has taken the SPX through short term
trend resistance, but has deposited it at the same level seen on 6/18 before a stumble.
This is the fourth impulse up to regain the 5/17 closing high of 1669, and perhaps that
magic moment is at hand. Even so, you need to keep a critical eye out as there has clearly
been overhead resistance which could prove nettlesome.
For my money, SPX 1650 is the very upper border of value in this market currently. A
strong move above this level in the short run will begin to take the market into more
speculative territory and will add more downside price risk.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!