S&P 500 Technical Outlook: The Bull Flag is Setting the Stage

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  • S&P 500 Technical Strategy: Flat, bull-flag opens door for long-continuation setups
  • Should downward trend continue through support, this bias can turn bearish very quickly.
  • As markets continue to price-in a December rate hike from the Fed, watch for weaknesses in risk-trends, such as the SPX500.
  • Alternatively, the up-side here is the most attractive given the veracity of this recent trend, and the bull-flag formation can help with entry. Traders can enter with stops wedged below support at 2,065, and targets set to the most recent swing-high at 2090 to offer a 1-to-1.5 risk-to-reward ratio… but a target at 2,100, traders can look for a much more attractive 1-to-2.5 risk-to-reward ratio on the long-side setup.
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