About one month ago I wrote a post titled,
Will The S&P 500 Make All-Time New Highs In 2019???
Edward Yardeni, who spent decades on Wall Street running investment strategy for firms such as Prudential and Deutsche Bank, predicts stocks will break out to all-time highs this year.
“I’m still sticking with 3100 and feel better about it,” said Yardeni, who noted valuation multiples, low interest rates and inflation is setting Wall Street up for a very good year.
In order for Ed to be right, price has to get pass the daily supply zones in white and the mess in yellow first, so I will take the other side and bet $1 that Ed that S&P 500 won’t reach new all-time highs.
Since that time, price has breached the first supply zone and is now trading above the 200 moving average. The 200 moving average, the king of moving averages are used by discretionary and system traders, market analysts and those algos on the daily chart for support and resistance and assess the long term market trend.
Price is also approaching the triple top near the 2800 level. The triple top pattern is a type of chart pattern to predict the reversal of a long-term uptrend.
Last, but not least as price has been moving up from the December lows, price has formed a daily demand zone (blue rectangle).
So the next level to challenge Edward Yardeni 3100 target is the 2800 or the 280 level on the S&P 500 ETF, SPY.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.