S&P 500: Strong momentum - BBH

The S&P 500 turned in a consolidative holiday-shortened week, trading between 2701 and 2748 and the most important technical development may have been the fact that there was no follow-through selling after the reversal in the middle of the week, explains Marc Chandler, Global Head of Currency Strategy at BBH. 

Key Quotes

“The S&P 500 finished the week with strong momentum and above the 2743 area, which corresponds to the 61.8% retracement of the recent swoon.  It has closed above its 20-day moving average (~2725) for the first since February 1. The next immediate target is 2755, and although there is more technical work needed, a move above there would strengthen our conviction that the S&P 500 can make new record highs in the coming weeks.   The S&P rose almost 0.6% last week.  Russell 1000 Value Index slipped 0.1% while the Russell 1000 Growth Index rose 1.1%.”