Today 07/20/22, the S&P 500 (SPX) broke above resistance created by a double top made on 06/10/22 at 3943.17 and 06/28/22 at 3945.86. The SPX high on 07/20/22 was 3974.13 and 30.96 points above the 06/28/22 peak. When the SPX broke above the 06/10/22 top on 06/28/22 it was only able to exceed the prior high by 2.69 points. Today’s break out compared to the 06/28/22 move was decisive and implies more upside action.
The daily SPX chart courtesy of Trading View illustrates two-time targets and potential resistance.
Both lines of the daily Stochastic have reached the overbought zone. In late March 2022 both daily Stochastic lines remained in the overbought zone for 11 – trading days. Using this prior incident as a rough gauge targets 08/04/22 for a possible rally peak.
The 07/07/22 blog “Long – Term Momentum Implies a Multi – Week Stock Rally” used Monthly Stochastic as a guide in determining a potential SPX peak on 08/22/22.
Broader US stock market seasonal patterns are bullish from July to August.
Evidence from the momentum and time dimensions imply a US stock rally into August 2022.