The State of the Trend
The SP500 continues to be in a sweet spot, where both the bullish and bearish scenario point to higher prices. The updated chart below shows that the index entered the target resistance zone. An upside breakout from the marked area will be a strong indication that the index will follow a different path:
In a short period of time, bullish sentiment has reached peak levels once again. This does not necessarily mean that a change in trend is imminent, but increases the likelihood that another consolidation is around the corner.
On the daily chart, the SP500 is tracing an ascending broadening formation. The key support levels to keep an eye on are 1230, 1221 and 1200:
The weekly channel chart, on the other hand, pegs resistance at 1260 and 1290: