The bull theme is intact for the S&P 500, at least in the short-term, according to Steve Miley, CEO of Market Chartist.
Miley says last week’s strong advance took it through various resistance levels to overcome 2944.25 (see Chart of S&P 500 E-Mini Future) and a high-level pause on Friday (6 September) keep risks higher in the short-term.
Medium-term, Miley sees an upside risk for 3000 and then higher targets at 3029.5 and 3050.0. Below 2851.75, however, would shift the intermediate-term outlook back to neutral; and a move through 2810.25 is needed for an intermediate-term bear theme.
Miley thinks that three events helped put global stocks on a stronger technical footing: i) the announcement that trade talks between China and the US will restart in October, ii) the UK Parliament passed a bill that makes a no-deal Brexit at the end of October less likely, and iii) the Hong Kong extradition bill (that had started the pro-democracy demonstrations) was withdrawn.
See more from Steve Miley here.