S&P 500 sending new strong buy signal

The S&P 500 index is sallying out to new heights. Last, in the 03/22/2015 issue I went into the benchmark index. I analyzed there that for May 2015 an important interim top at 2140 would have to be expected. After working off this important monthly up magnet = monthly resistance, technically a several month break in the uptrend should follow. Then, even a thoroughly more tangible correction to the round 2000 mark will be allowed respectively have to be budgeted concretely.

Before that however – till the important May turn date – for the time being it is going steadily upwards.

In the weekly time frame, with the weekly close at 2102.06 the index succeeded in generating a new sustainable buy signal. Its target is 2140 = monthly uptarget respectively the 2152 being the next higher GUNNER24 Up Magnet in the weekly time frame.

Last time I analyzed the weekly time frame within the free GUNNER24 Forecasts on 02/22/2015. Then the market quoted at 2110 being supposed to turn downwards either from the 2119 or from the 2152 horizontal resistance in order to…

... work off 2050-2030, namely till the end of April, at the latest. It would have taken a weekly close above the 2119 resistance to trigger the run to the higher target region… the outcome is well-known. The leader achieved an alltime high at 2119.59 thus swinging into a several week correction move…

…that came to its final low exactly at 2039.69, thereby working off the target area for the correction. From the 2039.69 correction low, a very fickle sideways move emerged that dissolved upwards now, with the 2102.60-close of last week.

The week closed clearly above the 4th double arc resistance thus generating a next strong buy signal that activated the 5th double arc as the next higher important uptarget in th weekly time frame. If the price reaches the 5th double arc in trend direction – probability more than a 75% - it will have attained its main target. In case of main targets, the markets use to tend to changes in trend!!

The maximally possible uptarget is noted above in the setup. It is at 2266 index points for the beginning of June 2015.

The 2266 upwards region is orienting itself by the intersection point of the Resistance Angle with the 5th double arc. Since summer 2014, the market has been delivering important alltime highs at the Resistance Angle. That is why it is rather likely, more probable than everything else that within the now expected new upwards move the index is going to keep on orienting itself strongly by the Resistance Angle working off there – as soon as the 5th double arc (time) signals so – an important target and important turning mark.

After the 2119-ATH, on closing base the Support Angle provided strong backing in March and April being the most important support for the index. If the newly begun up move orients itself by the Support Angle, the latter will meet the 5th double arc at about 2180.

Since the markets tend to exhaust strongly into the main target when they approach their respective main target – in this case the 5th – the 2266 seem to be much more likely than only “2180”… before the next “big” 3-6 month correction phase in the bull market starts.

As far as the power, the sustainability and the temporal end of the current bull are concerned and the question how hefty the final buying panic in the US stock markets may turn out, will keep on being answered by the comportment/reaction of the NASDAQ-100 to both of its panic arcs.

These two arcs have been supporting and pushing the leading index since 2002:

Both support arcs are clearly deducible respectively identifiable in the monthly time frame. At the green arrows, in the current bull market some tangencies with the upper panic arc occurred. At the blue arrows, some important bull-market lows were generated at the lower panic arc. I call both arcs panic arcs because they should have to make exhaust the index on and on and really stronger and stronger into the next important bull market high.

Exhaustion in the bull market can be defined like this: In a panic move, the boom being nourished by the boom, the price rises rapidly and into surprising heights until after the final bull market highs no buyers are to be found any more. Then the market plops into the deep hole…

The lower panic arc will lose its support function in August/September 2015. The upper panic arc will reach its widest extension to the right in May/June 2015, then and there intersecting the time axis and thereby losing then “officially its support effect. Ergo, the upper panic arc is signaling that the bull run should continue at least until May/June, at that time existing the first opportunity to top out. The lower panic arc is signaling that the bull run should go on till August/September, then topping out.

Interesting is the fact that for the very first time the April-2015 lows touched down exactly at the intersection point of the upper with the lower panic arc (orange arrow), thus encountering the combined decade support. As there is AGAIN most obviously some upwards pressure since the April lows, we may work on the assumption that since the April-2015 lows another powerful – and maybe even an extremely strong/mighty rally has started!

==> Because the April-2015 lows reached the combined decade arc support, quasi double decade support being visibly able the trend to accelerate again, the market may rise now in a truly monstrous way – toughly and heftily… at least until an important/first final turn threatens some day in May/June.

==> So, maybe with the April-2015 lows the test phase of some monthly resistances from the year 2000 came to an end… Mind about this both of the lower red dotted horizontals that correspond to important monthly alltime high closings from the year 2000.

As lately analyzed here, in my opinion at least working off the 4816 ATH is compelling for this NASDAQ-100 bull:

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