$SPX regain its upward posture this week, bouncing off its rising 10-day moving average with a gain of+1.5% for the week. Aside from the seasonality factor, the upside bias was fueled by better than expected earnings reports from retail issues like Best Buy ($BBY) and Abercrombie & Fitch ($ANF), along with some names from the tech space like Analog Devices ($ADI) and Dell Technologies ($DELL). Also, farm equipment company Deere ($DE) was among the more notable earnings-driven winners.
At the current juncture, $SPX remains above its rising 10/20-day moving average inside the month long uptrend channel, but still caught below its medium term downtrend line.
The resistance to reclaim for further positivity in the market is at 4,060, the current declining 200-day moving average level.
Bull Case: Reclaim above 4,060, the current declining 200-day moving average level.
Bear Case: Breakdown of 3,906 level, breaching its rising 10 & 20-day moving average. Next support at 3,800, the current 50-day moving average level.
At the current juncture, $SPX remains above its rising 10/20-day moving average inside the month long uptrend channel, but still caught below its medium term downtrend line.
The resistance to reclaim for further positivity in the market is at 4,060, the current declining 200-day moving average level.
Bull Case: Reclaim above 4,060, the current declining 200-day moving average level.
Bear Case: Breakdown of 3,906 level, breaching its rising 10 & 20-day moving average. Next support at 3,800, the current 50-day moving average level.