Technical forecast for S&P 500

S&P Sep13 has hit our target of 1672/73 & registered the highest ever close. If this does not hold us back then a retest of all time highs at 1685 cannot be ruled out.

However we are severely overbought short term & getting very overbought on the daily chart also. There is therefore always a risk of profit taking after a strong 2 week rally of over 100 points. Immediate support is 1655/53 but below here we should see a bounce from 1644/42 today.

Be aware that failure now to sustain a break above 1685/86, leaves a bearish double top in place & should send us back towards 1550 over the next few months.