SPX Targets 3000 Points As Long As It Holds Above 2900

Greetings everyone, we remain bullish SPX as price continues to make higher highs and higher lows.

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Price behavior so far is supportive of the bullish trend as price breaks resistance levels, comes back for a back test at previous resistance levels and previous highs. Monday welcomed the NAFTA deal with a gap up but prices came back on Tuesday to close the gap.

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Price pulled back towards 2920-2910 which was the level that we tested from below around 26-27 September. Price is also respecting the green upward sloping trend line. Resistance is at 2936. If SPX breaks above 2936 I would expect prices to continue towards next target level of 2975-3000.

There are bearish divergence signs (RSI) in the Daily weekly charts. This is an important warning. But only a warning. Not a reversal signal. Unless we see a clear break below 2865 I cannot say that an important top is in. Until then I consider pull backs as buying opportunities.

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