S&P 500 consolidates gains at record high levels
James Chen November 4, 2013 7:07 PM
<p>The S&P 500 (daily chart) hit an all-time high around 1775 on 30 October before pulling back slightly in the past week. This high was […]</p>
The S&P 500 (daily chart) hit an all-time high around 1775 on 30 October before pulling back slightly in the past week. This high was just short of its upside price target at 1800. The current record highs come on the heels of a long-term bullish trend, but most recently on an accelerated year-long uptrend that connects lows from the November 2012 low around 1340.
The pullback that occurred in late September and early October dipped slightly under that uptrend line, but quickly rebounded to hit successively higher highs within the past several weeks. The index is currently well above both its 200-day and 50-day moving averages, and is showing signs of overbought exhaustion. For any potential impending pullback or correction, key support resides around the 1645 level, which was the low of the last major pullback in October. The short-term upside objective remains around the 1800 resistance level.