The pictures we present in the following pages will speak more than words. Even a one-eyed technician with a crooked ruler can determine that trend structure remains very weak across the major U.S. indices we review here.
The S&P is up a little over +200 points from our buy signal last week and now getting close to our MFU-4 target area. Momentum is strong, and we have improving internals, which means the index may exceed this target that was generated off the March low.
The recent pullback in both the S&P 500 and Nasdaq 100 looks like a buyable pullback into support. Both indices have held and turned up from their respective 50-day averages and the lower end of their intermediate-term regression trend channels. Both indices have also turned up from an ellipse buy signal. For the S&P, we get upside in the 4815—4835 area.
After a 5-day pause at the MOB target band, the S&P was able to get above it and extending the advance off the October low. On page 3, we review the weekly chart with the next major hurdle for the index.