Breakout or Failure
|Odds are shifting further to the red scenario. The 2790-2800 S/R cluster is an important step towards a breakout. Moreover, the Dow Jones Industrial is close to its downward sloping trend resistance. Both indices overcoming these levels looks like a solid breakout. Overcoming this cluster shifts the next target for the S&P 500 above the January high.
The orange trend channel needs to hold in order to support the red scenario. If this support fails, the 2692 low gets most likely targeted. We remain with our forecast that the black alternative scenario resolves to the upside as well eventually.
All in all, another spike into a new high remains likely. However, short-term traders may want to wait for a clear break of the 2790-2800 cluster in order to optimize their risk/reward setup.
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