Selected Article

S&P500 Index - Broadening wedge forming

by Timothy Straiton
Monday 10th August 2020

The current broadening wedge pattern which is the process of formation in the S&P500 index indicates that the market is in growing disagreement among investors or uncertainty with regard to political risk in connection with the forthcoming elections.The 3530 level would mark the upper resistance line and possibly the end of the current bullish trend and put focus on the 2100 area.The 14 day relative strength index is displaying a bearish divergence which would support this market assessment.

It will be interesting to see the market reaction to a break of the previous high of 3393. If the market can overcome the upper rising resistance at 3530, then possible upside Fibonacci projection targets would be 3650, 3830 and 3910 and 4100.


 

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