S&P 500 - Heading Towards 1900 - 1950

The S&P 500 (CMP: 1805.38) - The index is showing bullish outlook in the medium term perspective.

The price is forming higher top higher bottom set-up which indicates the bulls are continuing their momentum. After the breach of earlier lifetime high of 1576 the index has moved into the new bullish territory and moving with sturdy bullish stance. In the past when the index has made the new lifetime high on October 11, 2007 but the price has not sustained in the higher levels. Instead of that it started falling and made the lower bottom at 666 levels (Earlier key bottom at 768).

In the present scenario, Price has sustained and heading towards the north substantially.

Technically, the index is moving within the rising channel line (marked dotted blue line) which is a vital bullish setup. Price is sustaining above all key moving averages and crossover of 20 – 40 EMA also placed with positive bias. Short term key moving average of 21 Week EMA is placed at 1718 levels.

The change of polarity line (Gary line) could act as support for the bulls, and the level is placed around 1725. This level approximately coincides with 21 Day EMA.  The weekly oscillators are placed in overbought zone.

Conclusion: Unless violation of 1725/1718 levels, the bulls could continue to rally towards the upper resistance line of the medium term pitchfork setup; the levels is placed around 1900 – 1950 levels.