A sustained move above 2310 is needed to confirm the resumption of the S&P 500’s bull market, says Ron Meisels of Phases & Cycles.
Meisels says the S&P is very near the top of its trend channel but internal momentum is weak. As such, he expects a pullback towards the middle of the channel at around the 2225 level. However, Meisels thinks there is good short-term support between 2230 to 2285, the rising 50-day moving average at just under 2250, and from the 200-day moving average at around 2160 (see Chart).
After the pullback, Meisels thinks the S&P will then be better positioned for an assault on the 2,310 level and a move higher. He sees “no sign that a bull market-ending top is developing”.
Read the full report.