The S&P 500 is close to completing a bullish pattern with a target of 2,900, according to Frank Cappelleri, Chief Market Technician at Instinet.
Cappelleri says a cup and handle pattern is forming on the S&P (see Chart 1). A break of the upward sloping trendline would confirm the pattern and give a target of 2,900, a new all-time high.
This, he says, comes on top of other bullish patterns already outstanding for the S&P, as well as the fact that 13 ETFs made new highs on 5 June (see Chart 2). Cappelleri thinks it possible the index will follow their example.