S&P 500 Technical Analysis: Looking to Put Bearish Scenario to Rest

What’s inside:

  • Global risk appetite healthy to start the week
  • SP 500 looking to put to rest one bearish possibility
  • Break above 2480 clears path to new record highs.

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Recently we’ve made mention of one possible bearish scenario – ‘head-and-shoulders’ top. The keyword being, “scenario”. This is what we had to say in our weekly equity market forecast, “There is still a small possibility we see a ‘head-and-shoulders’ top come to fruition, but until we see the market pick up steam to the downside and solidify the ‘right shoulder’ it’s only a passing scenario at this time. Appetite for risk remains stable and with that a move towards new record highs still has good odds.”

To start the week in Asia and Europe we are seeing good buying, as the Nikkei closed up 1.41% and the DAX and CAC are each sporting 1%+ gains at this time. Both of those key European indices are also breaking above key thresholds.

U.S. index futures are indicating a strong open at the time of this writing, with the SP 500 trading

Article source: https://www.dailyfx.com/forex/technical/home/analysis/spx500/2017/09/11/SP-500-Technical-Analysis-Looking-to-Put-Bearish-Scenario-to-Rest-PRtech.html?DFXfeeds=forex:technical:home:analysis:spx500