The S&P 500 Index has notched ten record closing highs so far in August. Furthermore, it defended the 50-day moving average near 4365 last week resulting in an extension of the uptrend. Economists at Société Générale expects the S&P 500 to challenge the 4540 level next.
See: S&P 500 Index to reach the 5000 level by year-end – UBS
4440 and the recent low of 4365 are short-term supports
“S&P 500 is heading towards a potential hurdle of 4540 representing a trend line connecting peaks of September 2020, April / May 2021.”
“It is worth noting that daily MACD has been posting negative divergence since April denoting deteriorating upside momentum.”
“Test and rejection of above line near 4540 could result in a pullback. This is not a reversal signal, however, temporary exhaustion can’t be ruled out.”
“4440 and the recent low of 4365 will be short-term supports.”