S&P 500 trades between 2 vital averages at 3774.69 to 3534.40. Below 3534.40 targets the five-year average at 3367.25, then 3193.52. Above 3774.69 confronts 4121.26 and 4316.71, then on the way to 4511.52 and 4598.46. At 4500s are the top and maximum top range.
S&P 500, from Sept. 28, traded from 3491.76 to 4103.62 or 611 points at 203 points per month. S&P 500 traded above vital 3774.69, and the target at 4121.26 fell short by 23 pips.
The five-year average in September at 3367.25 is now 3451.53 and a rise of 84 pips. Maximum tops in September at 4511.52 and 4598.46 are today at 4359.65, 4412.99, and 4496.59.
S&P 500 today trades in a 230-point range between 2 vital averages again at 3860.40 and 3629.79. Above 3860.40 targets 3867.65, 3897.78, 3999.85, 4118.44, 4257.52, 4359.65, 4412.99, and 4496.80.
Below, 3629.79 targets the five-year average at 3451.53, then 3307.81, and following averages at 3287.14, 3187.29, 3118.38, 2985.07, and 2869.44.
S&P 500 is slightly overbought at the 2700’s average at the ten-year and oversold from 3860.40 and 3639.79 to match the same reading in September.
Targets at tops are located at 4496.59; however, 5000 won’t trade anytime soon and is actually off by 503.41 points.
The ultimate best trades are located at the 3860 break to target higher levels at 4000s, then begin a short-only strategy.
Overall, S&P 500 is looking at 200, 3, and max 400 pip ranges per month for the next three months which means tops from 4200s to 4400 will struggle to achieve destinations.
EUR/USD Vs. S&P 500
EUR/USD for January trades to its seasonal lows, and S&P 500 will match EUR/USD’s downtrend. As S&P 500 is established, all stock markets will trade the same result. A short-only strategy for the next months would also be viable.
