S&P 500 Pauses Near Record Highs Amid Deeper Pullback

The S&P 500 turned back into a bullish mode at the end of November and moved very close to the previous all time highs, but notice that the market still failed to make a clean breakout. Instead, what we are seeing now is a deeper retracement, which still looks like a counter-trend move, possibly even a subwave two of five. There is very solid support around the 61.8% retracement near 6740, followed by the 78.6% level around 6720. For now this still looks like a corrective pullback that could set the stage for higher prices, but the key confirmation for continuation would be a push above the 6883 level. If that happens, then the market can start targeting new highs in a higher-degree blue wave five.

Thank you for reading and if you wish to see analysis like this on daily basis - join us at wavetraders.com where we update Forex, Stocks, Commodities and Cryptocurrency