Technical Forecast for S&P 500
S&P Sep13 has hit our target of 1672/73 & registered the highest ever close. If this does not hold us back then a retest of all time highs at 1685 cannot be ruled out.
However we are severely overbought short term & getting very overbought on the daily chart also. There is therefore always a risk of profit taking after a strong 2 week rally of over 100 points. Immediate support is 1655/53 but below here we should see a bounce from 1644/42 today.
Be aware that failure now to sustain a break above 1685/86, leaves a bearish double top in place & should send us back towards 1550 over the next few months.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.