S&P 500 Trading Outlook (3 Days):Â Â No change. I’m bullish the S&P 500 (NYSEARCA: SPY) for the first few days of this week.
December has been rough on investors and isn’t ending with much fanfare.
But the tail end of a late-arriving Santa rally is lifting stocks into year-end and could trickle into the first couple days of January.
Should stocks continue to show strength, it’s possible to see 2548. And we’d need to see a big buying surge to get to our maximum target of 2600-30.
Active investors should manage positions with discipline here.
There’s been largely no change in my thesis. Gains should continue short-term before fizzling our this week. Overall, the S&P 500 (SPX) looks to have exceeded the downtrend from early December and is “stair-stepping” its way higher in the short run.
While I do believe this trend is in jeopardy of reversing, there is insufficient proof to think we’re there just yet. My opinion continues to be technically that S&P can work up to 2550-85 area and likely stalls there. If S&P gets under 2397, this would certainly change that thesis to more near-term bearish into 1/2-3. For now, its right to stay the course on this bounce.
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Twitter: Â @MarkNewtonCMT
Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
