In August and September, I posted special analyses regarding the rare instances when the SPX and NDX staged a V-shaped recovery. Back then, premium subscribers saw how -5% pullbacks played out for the SPX and -7% on average for the Nasdaq. While the timing of such pullbacks has varied over the decades, today we will study the current market situation and price targets for both the NDX and SPX using updated charts.
The V-shaped recovery was not entirely a surprise, since in April several rare bullish signals were triggered, and all of them were analyzed in this publication, setting a bullish view for the market since then.
This is a must-read publication for investors and traders, not only for the medium-term outlook but also for understanding the momentum currently driving the market. Knowing whether the market is bullish or bearish adds confidence to swing and short-term trades, allowing for greater acceleration in strong setups.
The analysis today includes charts for the SPX and NDX, with their price targets.
Remember to visit my complete Market Intelligence and Educational Library. It remains my most-read resource because it provides a clear roadmap for anyone wanting to navigate the stock market and crypto space.
Upgrade your subscription to the paid plan, the Weekly Compass has more tools for you, and the recent bounce is consistent with the considerations and analyses posted during the weekend ahead of the rally. These notes come from Saturday’s analysis:
“…There are good chances for a bounce given the recent selloff, the next one would be the forth red week if not, and that has not happened for long time in normal pullbacks, the VIX looks overbought as an additional factor”
On the other hand, the setup for IWM was highlighted as specially bullish, with a comprehensive analysis on Saturday. Small caps and this ETF have bounced 5% already this week, without gaps, allowing a healthy entry since Monday morning.
The complete publication and analysis that favored a bounce with the support and resistance levels to validate is here:
Let’s begin with the S&P 500, and then we continue with Nasdaq, and today’s stock market and Crypto update. Subscribe!
SPX - Price Target Study and Result
What you will see for the SPX, and in the second section, the NDX, is a study of price action that ends up with the bullish target where a major correction is likely. It’s the same approach I used in 2024 (exactly a year ago) to state that a major reversal was coming at $6,109, the actual top in February was $6,147. Let’s study the number updated: