With one trading day remaining in 2018 we look forward to the new year, and it’s time for our 2019 target forecast.

Doing a yearly target forecast usually requires a balancing act between competing forecasting models. This year, however, our task is much simplified since almost all models yield similar results. Therefore, we’ll stick to a straightforward TA chart, highlighting the key technical levels to watch out for in 2019:

Upside target: 3080

Downside target:2100

Key buy/sell zone:  2525 – 2550

Secondary resistance levels at 2820 and the bearish target angle.

Support at 2335 and 2100, and the bullish target angle.

A waterfall decline, similar to what the SPX experienced in 2000 and 2008 projects a low target of 1800.

For now, we’ll keep a close eye on the two immediate support/resistance levels  (2335 and 2525).

You can follow this chart, in real-time,  here.

In our last article we focused on market breadth. This proved to be quite timely since in the two weeks following its publication, NYSE market breadth managed to equal the longest streak of consecutive negative days (eight). This, of course, was followed by a powerful  rally, which was a necessary outlet for all the accumulated negative energy:

You can follow market breadth gauges for the major US and International exchanges live here.

It is also interesting to note that while the CIT daily bullish percent index peaked in three short days (this usually precedes a sideways/down market phase):

the weekly readings are at zero (a level commonly associated with swing bottoms):

To have a sustainable, directional move, the daily and the weekly trends need to get in sync.

We’ll be back in the New Year with our regular SPX, Oil, Gold and G6 updates.

Happy 2019 !

Charts, signals and data courtesy of OddsTrader, CIT for TradingView and NinjaTrader 8