S&P500 Time to break above the Stimulus-Elections Triangle?


Since the September 03 Top (All Time High), S&P500 has entered a volatile pattern in the form of a Triangle. The major drivers of this weakness have fundamentally been the U.S. stimulus being delayed and then the elections.

Today the Lower Highs trend-line of this Triangle is being tested. If broken, I expect the 3590 Resistance to be tested, with an extension to the 1.236 Fibonacci at 3620 as it happened with the July 23 extension.

The reason I give more probabilities to an upward break-out from the Triangle is the fact that the MACD on the 1D time-frame has (just) formed a Bullish Cross much earlier than the previous time, something that may accumulate buyers. Also the RSI has broken above its Lower Highs trend-line already, something that was a bullish signal 1 year back. On top of that the MA30 just crossed above the MA50 which on a one month horizon at least, has historically been a bullish signal (we have to go years back to see immediate selling after a 1D MA30/50 Bullish Cross.

Most recent trade on S&P500:

S&P500 targeting 3500

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