The SPX basically closed the year at ATH and is nearing that target we have been looking for at 3855 as the 138.2% Fibonacci extension of the COVID correction move.
The rising monthly channel chart shown also shows markets are stretched near resistance and already outside of the monthly upper Bollinger Band while the weekly upper band is at 3770. Although there remains room for further upside as a long-term equity bull the current risk/reward is shifting less favorable and a correction with sentiment also stretched is not only likely but would be welcomed.
With a positive fundamental backdrop for 2021 I expect the longer-term bull trend to remain firmly intact and am looking for a typical 10-15% correction in Q1, which would align with a potential test of the 200-day moving average at 3210. We are working out of a tight range into year-end and potential to carry us up to that 3855 target with strength expected through January options expiration.
The rising monthly channel chart shown also shows markets are stretched near resistance and already outside of the monthly upper Bollinger Band while the weekly upper band is at 3770. Although there remains room for further upside as a long-term equity bull the current risk/reward is shifting less favorable and a correction with sentiment also stretched is not only likely but would be welcomed.
With a positive fundamental backdrop for 2021 I expect the longer-term bull trend to remain firmly intact and am looking for a typical 10-15% correction in Q1, which would align with a potential test of the 200-day moving average at 3210. We are working out of a tight range into year-end and potential to carry us up to that 3855 target with strength expected through January options expiration.
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Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.