Chart of the day

Where do we stand fundamentally?

The S&P 500 (SPX) is currently in a positive trajectory, having risen over 20% this year, with analysts pointing to potential further gains. Despite some market turbulence caused by rising Treasury yields, inflation data, and geopolitical concerns, the index has shown resilience. Investors are watching upcoming inflation data and earnings reports to gauge the Federal Reserve's next moves on interest rates, with many expecting a 25 basis-point rate cut in November

SPX is breaking above the strong bull flag resistance of 5800 for an extension higher. A break above 5860 would accelerate the upside continuation in the third wave higher of the fifth long-term wave. Invalidation of this immediate upside extension could come upon a break below 5700.

An invalidation level of a fifth-wave long-term extension higher and a bullish cycle continuation is 5450. As said this extension higher could lead to a 6400 target in the medium-term to long-term if the SPX breaks above 5860 with a confirmation.

_{Try a long trade entry with a stop loss below 5800 to target 6000 and higher.}