SPX S&P 500 Weekly Chart

The W pattern bottom and breakout was highlighted as it occurred in early October and targets 2110 which is achieved. The overbot conditions, rising wedge and negative divergence (red lines) on the daily chart create the spank down off the top five days ago but the indicators on the weekly chart above remain long and strong (green lines) as price printed the new high last week. So price will want to keep coming up for new highs after any pull backs until the indicators go neggie d. Price would like to fill a tiny gap remaining at 2119.

The stochastics are overbot so that helped initiate the weakness so far this week. Th eprice low this week thus far is 2068 with the 50-week MA support at 2062 holding tight. Price violated the lower pink standard deviation band during the August-September selloff so a move back to the middle band is in play which occurs and a move to the upper band at 2163 is also in play although this value will likely come down over the next couple days. The all-time record high is 2135.

The 20-day MA is 2066.70 and 200-day MA 2063.59 and 50-week MA 2062.26, thus, the 2062-2068 is a serious gauntlet of support; big trouble occurs below. Price fell to 2069 yesterday and bounced. The SPX began the year at 2059. The 2060-2069 area may hold as support in the near term since the weekly chart indicators are showing long and strong juice still available. The weekly chart should help equities remain buoyant into Thanksgiving despite any pullbacks. The stochastics and Williams are overbot. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.