Wall Street ready to break records?
- S&P 500 faces a clear path to 2,270
- DJI; Nasdaq Composite also likely to post new highs
- Russell 2000 unlikely to break upside records
On the S&P 500 daily chart, the RSI closed just above the 60 threshold indicating a return to bullish sentiment.
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After the Q1 selloff and subsequent rebound back to Q4 2015 highs, we saw a Doji Evening top and reversal signal. A selloff followed up to and around the Brexit vote but the market rebounded again strongly last week taking out the Doji cancelling out the top pattern.
A Fibonacci projection on the weekly chart confirms the targets from the daily time period – i.e. the 2,230 area – is possible in Q3.