The sharp S&P 500 (SPX) rally could be nearing a top. Action on 10/12/23 could determine if it’s a top in a bear market rally or a signal to move higher.
The daily SPX chart courtesy of BigCharts.com updates the action.
The 10/07/23 blog “Intermediate Bottom for U.S. Stocks?” illustrated SPX – Fibonacci resistance at 4,365.66 and 4,378.85. The SPX has moved beyond these potential rally stoppers and has traveled into what was noted as a fear zone. The SPX gap created on 09/21/23 is in Elliott wave terms is a “third” of a “third” wave down. In stocks this represents the maximum fear point, a move above the gap at 4,401.38 could be a powerful bullish signal.
BigCharts.com – Slow Stochastic is a very effective price oscillator. On 10/11/23 both lines are above the overbought zone which begins at 80%. A near-term top could come soon.
The hourly SPX chart zooms in on the short-term action.
The move up from the SPX 10/06/23 bottom appears to be a developing Elliott – Impulse wave.
Only one of the hourly – Slow Stochastic lines has moved above 80%, which implies more upside action.
An important SPX signal could be made on 10/12/23. Watch SPX 4,401.38.
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