SPX grinds higher, posting a new record high at 2120.92 on Friday (April 24, 2015), up 218% from its March 6, 2009 low at 666.79. The 6-year and 2 month rising wedge support (from March 2009 low) continues to underpin the uptrend. While the 2048.38 support (April 1, 2015 low) near the rising wedge trendline holds dips, there is scope for further strength towards the Fibonacci target at 2121.43 (1.500x(666.79-1364.56) from 1074.77). Above there lies the following Fibonacci targets at 2203.76 (1.618x(666.79-1364.56) from 1074.77) then 2305.64 (1.764x(666.79-1364.56) from 1074.77). However, on the downside, if bears manage to break below 2048.38 area, it is likely to see retests of 1980.90 (February 2, 2015 range low) ahead of 1821.61 (October 15, 2014 spike low).
Outlook:
Short term: Buy on pullbacks
Long term: Bullish
Outlook:
Short term: Buy on pullbacks
Long term: Bullish