SPX Targets 2022

 SPX upside/downside targets for 2022:

SPX Pattern and Trend

 Peter Lynch correctly observed that more money is lost anticipating and preparing for corrections than during actual corrections. This time it won't be any different. There are abundant signs of market participants freaking out and all sort of divergences abound. While the SPX and DJIA remain in a weekly uptrend, NASDAQ has been trading flat since October '21, while the Russel 2000 has been trading in a narrow box since January '21.

Daily SPX found support at the weekly downside target, just below our bull/bear level for 2022:

This chart gets updated daily here.

SPX Update

The SPX finished the week on a new closing high. More importantly, it happened despite declining daily market breadth, which peaked on Wednesday. Once daily and weekly internals get in sync, this should provide fuel for higher prices:

SPX Trend and Pattern

 After failing at the ATH, the SPX registered two consecutive 3-day identical bearish patterns:

A projection of this pattern identifies the key support/resistance levels for next week: 4450 & 4600.

A break below 4450 could lead to a panic sell to 4300. A break above 4600 opens the door for a retest of the ATH.

Weekly market breadth has been steadily declining and has entered oversold territory:

suggesting that a strong rebound should follow.

SPX Pattern and Trend

Peak momentum readings at the beginning of the month were followed by a quick sell-off, and the SPX spent the last two weeks trading in a box. Strong seasonality suggests giving bulls the benefit of the doubt:

Support at 4630 and 4680; resistance at 4720. 

Upside/downside targets at 4750 and 4630.

(Data, signals and targets courtesy of  OddsTrader, Gann 9 and OT Seasonal)