S&P: M/T bearish signals fading

There is no reason to be short the S&P 500 from here in the medium-term, according to Andy Dodd, Head of Technical Research at Louis Capital Markets.

Dodd says that the index has managed to clear its sideways channel (between 1905 and 2030) and with MACD crossing up, a bullish candle from last week’s price action, and with no sign of bearish RSI divergence, there is no longer a reason to be short the S&P 500 in the medium-term. His target is 2170, although it will need to break key resistance at 2120 before that target is reached.

See Chart.

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S&P 500
Russell 2000
Dow Jones 30
Dow Jones Transportation Index
Shanghai Stock Exchange Composite Index
Nikkei 225