Carolyn Boroden Analysis: S&P 500 Index Retracement Analysis
The S&P 500 reversed at a level we highlighted last week, and we are looking for signs of confirmation in anticipation of our new target
Last week, we highlighted the fact that a confluence of signals were setting up for a tradeable bounce between the 15th and 17th, which is what we ended up getting. By looking at longer-term charts and measuring prior sizable declines, we projected support in the low 1,800's. Based on our pullback measurement, we are projecting a target of 2,073 on the S&P based on a 1.272 extension. There is no guarantee that target will be reached, and we will be looking for signs of confirmation or failure in the coming days. The market is currently sitting right on potential resistance, although we have yet to see any reversal signals. This is not necessarily a time to go short, but placing stops is prudent.
