SPX Outlook

SPX starting the week sandwiched between support at the Pivot Line and resistance at the top of the Neutral zone:

Daily market breadth reached oversold levels last Thursday and started an immediate rebound:

The average overbought/oversold cycle is 5 days:

SPX 2019 Target Update

SPX finished the week at an important juncture -- the top of the neutral zone:

Market breadth is getting oversold, setting the stage for the next sideways/up phase:

SPX Weekly Targets

Powell's put is being tested again:

While daily market breadth is getting oversold:

The weekly SPX remains above the breakout zone but is testing pivot line support:

SPX and the Powell Put

Powell's testimony cut the down phase of the market breadth cycle short:

Therefore, we expect the next peaks and troughs to occur at higher price levels:

The SPX remains in a strong uptrend, firmly above the breakout zone:

Only a break below that zone will signal a meaningful trend reversal.

SPX Weekly Targets

The expected up-phase matched exactly the average time and price targets associated with it. The SPX made a new high and is starting the week above the break-out zone:

Market breadth has become overbought, and the stage is set for the next sideways/down phase:

The next chart shows the most recent market breadth overbought/oversold zones along with the weekly SPX targets:

The average advance/decline is 5 days.