Where the markets are going for the end of the year? A technical overview on S&P500
The S&P500 is one of the most important equity indices in the world for volumes and market capitalization. This index is also a benchmark used to calculate the portfolio performance .
This analysis considers a candlestick chart with monthly time frame in order to analyze the long-term trend and the most important price levels for the index.
As we can see on this chart, the positive trend was started in march 2009, after the banking-sector crisis with Lehman-crash, @665,75. In September S&P500 touched the maximum level since march 2009 @1474,75.
The most important price level for the S&P500 seems to be 1590, an area touched three times since 1999, a very important long-term resistance for the index. With the actual trend, the long-term target for S&P500 could be 1590.
The 20-months Moving Average was broken in a Short way and then reabsorbed in Long direction, confirming the strength of this trend.
The price of S&P500 is testing the Upper Bollinger Band as the 2005-2007 rally: the price was “closed” between the Upper Bollinger Band and the 20-months Moving Average. Now, we are going to see the same long-term configuration on S&P500.
Probably, we can see the S&P500 @1590 for the next few months, testing this area for another rally. The performance from level 1434 is over 10%
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