The S&P500 index managed to recover from the slump in the previous few weeks.
Price action was broadly bullish last week as the S&P500 managed to breakout above the 3388 handle rather easily. This current bullish momentum could see the leading index rising to challenge the previous all-time highs of 3579 from 2nd September.
However, we could see a modest retracement taking place here. This could mean that prices will retreat to the current price region around 3388.
Establishing support at this level could potentially cement expectations for a breakout from the previous highs.
From a price action perspective, a retracement from the current all-time highs could form a potential cup and shoulder pattern.
If this pattern emerges near the current levels, then we could expect to see a possible upside target to 3917.
