There is still no clear indication where the S&P 500 is going next, according to Tony Sycamore, Director of Australia-based TECHFX TRADERS.
Sycamore says the pause following the break above the June 3231.25 high could mean one of two things: i) a consolidation before a renewed upside push or ii) the beginning of a deeper pullback. Should the S&P close below the short-term support coming from the recent lows in the 3190/80 area, it would be a warning that a pullback towards 2930 is underway. A break and close below medium-term support at 3150/30 would indicate the move lower is gaining traction.
Conversely, should the S&P continue to hold above short-term support at 3190/80, as it did last week, Sycamore would expect a retest and break of the all-time-high at 3397.50, before extending towards 3500/3600 into year-end.
Overall, Sycamore says a mild bullish bias remains in place while it remains above 3190/80.