S&P Forming Cup with Handle
Daily S&P 500: The S&P has now traced out a "cup" pattern as was mentioned in past emails. A pullback appears to be forming a "handle," a short-term pullback that often occurs before potentially breaking out of the cup pattern. A pullback to the 10-SMA is a downward target, but price could move more sideways as the average catches up. Bottom line: the uptrend is still intact, and this pullback can be considered constructive, and it may lead to a good time to buy stocks. That said, we're getting close to the Presidential election, so volatility may enter the picture.