The S&P500 index is ready for a bullish breakout, if we only judge the ascending triangle forming at the all-time highs. The index looks ripe for a continuation, and the minimum distance as suggested by the ascending triangle points to 4,200 and beyond.
With only one trading day left in the quarter and with the prospect of a strong NFP report next Friday, the price action looks constructive. Moreover, President Biden is supposed to announce the details of the new infrastructure plan later today, another positive for the stock market.
The new administration at the White House delivered on its promises so far. In fact, it did so in a record time, releasing $1.9 trillion to help the economy and households coping to the pandemic. But that was only short-term help.
What follows is a bill close to $3 trillion or more, designed to rebuild America’s infrastructure. Today’s details are important as they reveal the long-term plan and how America intends to finance such projects.
S&P500 Technical Analysis
Bulls may want to wait for the price action to break and close above the horizontal base. Such a move will trigger more stops and it will open the race for the measured move. As a target, bulls may want to consider 4,200 with a stop at 3,880.
Don’t miss a beat! Follow us on Telegram and Twitter.
S&P500 Price Forecast
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Mircea on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.