Still No Sellers... Higher SPX Prices Directly Ahead?
From a big-picture perspective, the behavior of the cash S&P 500 Index (SPX) after confronting its upper Bollinger-Band Line at 1760 on Tuesday can only be described as very impressive.
Because the vast majority of the time, when the price structure traverses the width of the Bands-- in this case from the lower Bollinger Band at 1646.47 on Oct 9 to the upper Bollinger Band at 1759.33 on Oct 22-- a gain of 112.86, a directional reversal usually emerges.
This sets into motion a counter-directional move towards a confrontation with the opposite Band Line.
In this case, after a 7% upmove in just 9 trading sessions, into the close proximity of the upper Bollinger-Band Line, the SPX barely has weakened.
Barring a decline that breaks key near-term support at 1740.50, the current set-up increasingly favors upside continuation towards another confrontation with the upper Bollinger-Band Line, now near 1780.
In that tomorrow is Friday, my sense is that in the absence of a break of 1740.50 in the immediately upcoming hours, the SPX will be off to the races into the weekend.