Lagging behind the German Dax in the last couple of weeks, SPX is testing important medium-term support levels. The 1988-2000 area is important support that if broken will push the index lower towards 1950 or even 1900 where the 61.8% retracement of the rise from 1820 is found.
S&P is making a consolidation near its highs that could be explosive to the downside if 1988 fails to hold. Cloud support is at 1950 and I expect a sharp move to that level once we break support. On the other hand bulls will need to move the index back above the Ichimoku cloud at 2026 level and in order to cancel any chance of a deeper pull back we will need to see a confirmed break out above 2050.
The longer-term uptrend remains intact even if we pull back towards 1950 or even 1900. Such a pull back will also be considered a great buy opportunity before the next upward move that is expected to bring the index between 2150 and 2300.
Concluding, trend remains bullish and a break above 2050 will cancel the scenarios of a deeper pull back towards 1950-1900. Target for the medium- to long-term is 2150-2300.