Following a remarkable turnaround, the S&P 500 Index stands at 3,100 or 9% shy of its highest reading ever. The velocity of the up move could indicate a test of the 3400 level is on the cards, per Charles Schwab.
Key quotes
“Prices have risen out of a sideways consolidation period and into resistance at the 78.60% Fibonacci price of 3135. Prices could begin to stall out with the potential for another sideways consolidation period between the 78.06% resistance and 61.80% support.”
“A logical upside target, should prices breakout, could be near all-time highs around 3400. The recent trend is clearly bullish, but the Stochastic RSI indicates an overbought condition being pegged at 100%.”
“Support comes in around 2930 but rising moving averages around the 3000 psychological level could serve as potential support areas as well.”
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