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S&P500 to explore new heights

Bullish Continuation: I was wrong anticipating a more significant consolidation/correction in S&P500. I did note possible support around 2000 and that if the index holds above this pivot, bulls would still be in charge. Indeed, price tagged 2000 after Brexit, but bounced up sharply as we can see on the weekly chart. Price action essentially suggests bullish continuation.

S&P500 weekly chart

(click to enlarge)

Strong Reversal Suggests Bulls in Charge: The fact that S&P500 reversed so quickly after the Brexit dip suggests that bulls are in charge. Look at the V-shape reversal on the daily chart. This suggests that the index should be able to push above the 2015 and record high around 2135. In the bullish continuation scenario, we should also see the daily RSI push above 70. (Daily chart below)

2040 Support Should Hold: In the bullish continuation scenario, there is still a chance for a pullback. But as you can see on the daily chart, there is a common support around 2040. This area should hold, and the RSI should hold above 40, otherwise, the bullish outlook could be sidelined for further consolidation.

S&P500 Daily Chart 7/11

(click to enlarge)