S&P500 Teases Breakout Levels
The S&P500 is poised to break out from its 2022 downtrend line (chart 1). The benchmark index opened yesterday at 4069, traded to a high of 4100, before backing off to close at 4019. 4019 is up 14% from the lows of October, but more importantly a close of 4100 or higher would signal a breakout from the downtrend that began at the start of 2022.
S&P500 – Tuesday 12/13/22
In the 12/1/22 World Snapshot, TPA stated:
“After rallying over 120% from the lows of March 2020 to the highs of December 2021, the S&P500 broke down below its major long-term uptrends in January. Stocks have established a distinct pattern of lower highs, a downtrend, in 2022. Chart 2 shows that the recent rally…puts the market right at its 2022 downtrend line. What will happen now? While a breakout above the 2022 downtrend line would be significantly positive, as a decline from here would confirm this year’s overwhelmingly negative pattern. TPA leans toward a positive outcome at this juncture.”
If the S&P500 can sustain a close to 4100 or greater, stocks should continue to move higher.
Jeff Marcus founded Turning Point Analytics (TPA) in 2009 after 25 years on trading desks and 13 years as a head trader to provide strategic and technical research to institutional clients. Turning Point Analytics (TPA) provides a unique strategy that works as an overlay to clients’ good fundamental analysis. After 10 years of serving only large institutions, TPA now offers its research services to mid and small managers, RIA’s, and wealthy sophisticated individuals looking for a way to increase their returns and outperform their peers.
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