S&P bulls regain control, aiming for the new highAfter the major sell-off in the first week of September, the market has made a U-turn, rebounding to its previous highs. This outcome was anticipated as highly likely in my last review, though, as is often the case, the market exceeded boldest expectations.
Currently, we have confirmed a weekly higher low, which provides a solid foundation for the continuation of the uptrend. It’s also worth noting that the rally is being driven by risk-on assets like XLK and XLY, reflecting growing investor confidence.
The mid- and long-term outlook remains bullish, though heightened volatility is expected as we approach the US elections.
Important levels:
539.4 - major weekly low. Bulls must protect this level to keep uptrend intact
565.2 – major monthly high. There might be some resistance at this level. Bulls must clear it for uptrend continuation.
FOMC meeting is set for Wednesday but it is not expected to bring big surprises.
