The moment everyone’s been waiting for should finally be here: SPX closing at all-time highs. The likelihood we see this at some point this week is extremely high (like 80% or more). The question is, will we close above this level for the week?
While the are chinks in the economic armor, the momentum in this market seems unconcerned… for now. Instead, we climb the wall of worry.
One concern about this move is the light volume. Lighter volume can be a recipe for volatility spikes. But so far, the lower volume seems to be a key part of the recipe pushing things higher.
For the week, watch for SPX to take out the intra-day high of 2940.91 set in October 2018. Once this level is breached, we’re in rarefied air. There’s not a specific ‘level’ the market should hunt for, other than Fibonacci levels (based on where to where though?). So the next thing to watch is the ‘usual suspects’ of 2950, 2975, 2994 (seems to always be just a little more than 5 points when we get close to a Big Round Number) and 3000.
On the down-side, support should hold at 2900 – at least for this week. If not, we have bigger issues to examine.
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