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Liz Thomas highlights that the S&P 500 declined and repeatedly bounced off the 23.6% retracement level three times in recent months. In the past few days, the index surged to a record intraday high following a period of July deleveraging and a momentum washout.
Thomas suggests this move could represent a meaningful breakout for the market.
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Earlier, Liz Thomas observed the S&P 500 trading near its 50-day moving average, with attention on levels that could lead to all-time highs in a previous report. She also reported that Nomura's TACO indicator had peaked at its highest level since late March, indicating elevated market risks at the time. These prior observations come as technical factors continue to shape trading patterns.