The S&P 500 punches up through the closing high for the year at 2017 from 1/5/16 for a new record closing high for this year at 2022. The SPX began the year at 2044, however, so another 22 points are needed to print a positive year. SPX 2043.94 is the intraday high for 2016 that occurred in the first minutes of trading for the year. Another day like Friday and it is there.
Price is in the 2044 neighborhood now and the weekly chart displays long and strong indicators so it is reasonable to expect the Dow to print positive on the year say at the tail end of this month into April. Keystone had highlighted the powerful W pattern on the SPX when it formed a month ago. The gauge of strength of a W pattern can be determined by how far below the 50 and 200-day MA's the pattern is; this W was under both moving averages so the W was powerful and kaboom, price is above 2K in a flash.
The bottom of the W is 1828, let's call the top, the breakout level, at 1940. This is a 112-point difference so the target is 2052 (1940+112). The SPX is a stone's throw away from the W pattern target. The top thin brown line shows the last upside gap that would need filled at some point in the future. If the bears were smart, they may want to send price higher to fill the gaps up top say over the next month. This would button-up all the gaps up above and allow the bears to then resume a strong downward path for the stock market for the months ahead.
The 200-day MA is 2020. The 50-week MA is 2033. The 20-month MA is 2032. The critical 12-month MA is 2029. The 10-month MA is 2016. The starting number for the year is 2044. The strongest price support and resistance is 2061, 2046, 2040, 2032, 2023, 2019 and 2011.
Thus, you can see the strong overhead resistance gauntlet at 2029-2033. Support below is 2016-2020. Bulls win big above 2029 since price will likely keep on running up through 2033 and higher. Bears win big below 2016; the loss of the 10-month will immediately accelerate the market selling. Between 2021 and 2028 the bulls and bears are duking it out on the battlefield. 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.
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