Analyst thoughts: S&P 500 index
VIEW RETAINED: TESTING THE PREVIOUSLY RECOMMENDED TARGET AREA
The long-held ABC bullish view from S4 to R1* is testing the target range.
The interim labelling has been adjusted to incorporate recent price action.
While the bull trend remains intact the outlook remains neutral with the illustrated stance of an increasing correction probability to S0* and eventually S1 over time.
The importance of the target area:
R1/R2* is cluster resistance where C=1.618 of A , as well as where grey 3= 1.618 of 1. These are common extension levels.
The RSI oscillator is overbought and diverging.
R1 and S0 define the immediate range, with the long-term range being between R2** and S3**.