S&P500: Identical so far with 2018/20. October rally possible.

Oct 7

S&P500 just turned bullish on its 1D technical outlook (RSI = 57.810, MACD = 53.820, ADX = 46.107) and that should give a new boost to the already bullish 1W timeframe (RSI = 63.805, MACD = 167.870, ADX = 40.687), which showcases the long term trend. And that long term price action can't be shown more effectively than on the 1W timeframe. We have spotted that the index is repeating the 2018-2020 trend.

Starting with a Channel Down under the 1D MA50, the index recovered massively and when it slowed down on a Channel Up, the 1W RSI turned ranged. We are now where the past fractal started rising aggressively again on the October 21st 2019 1W MACD Bullish Cross, as last week it completed a new such Cross. With the support of the 1W MA50, it is more likely now to see a strong rally to the 2.5 Fibonacci extension, where the 2020 fractal abruptly stopped with the COVID market meltdown, which is an event that can't be put into chart analysis.

This pattern shows that we have a clear target for early 2025 on the 2.5 Fib (TP = 6,500).


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