S&P500: This may be the rally that turns the 1WMA50 into Support

The S&P500 has completed 3 straight green weeks, the strongest 3 week rally since October 24th. As we zoom out on the 1W time frame where the technicals have just only turned marginally bullish (RSI = 55.603, MACD = 28.700, ADX = 34.959) we can see an attempt to form a Channel Up. The 1W RSI is slightly pulling downwards and since it started rising back in May, this was a pull back signal within a greater bullish wave. Those are clearly shown on your chart. The June 13th-August 15th wave rose by 18.90% and the October 10th-December 12th wave rose by 18.40%.

This suggests that there is still much room left to rise on this wave, thus we remain bullish aiming at another +18.40% rise (TP = 4,500). It is worth making clear at this point that if another such bullish wave is materialized, then the 1W MA50 will be turned into a Support for good. And this trendline tends to be the standard Support level during Bull Cycles.


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