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S&P 500- Could Be Dangerous Place For Selling To Start!

Summary

The trend in the S&P 500 remains up, as it is above long-term moving averages and is in a solid rising channel in the chart below.

The little bit of softness that has taken place of late has done nothing to change that trend.

The Power of the Pattern wanted to share with you this morning a key test to the bull trend in the chart below-

CLICK ON CHART TO ENLARGE

The S&P has remained inside of quality rising channel (1) since the 2009 lows. The top of the channel was touched back in late 2014, where it then embarked on sideways to downtrend until it testing the bottom of the rising channel in 2016.

The strong rally since testing the bottom of the channel in 2016, now has it testing the top of the channel at (2).

This could be a dangerous channel resistance test for the bulls if selling would start, especially as the number of assets invested in the 2X long S&P ETF is near record highs!

Why you see chart pattern analysis with brief commentary:   

There is a ton of news and opinions about markets and stocks that make the decision-making process more difficult than it needs to be.   

I believe the Power of the chart Pattern provides all you need to see what is taking place in an asset and determine the action to take. 

This approach has worked well for me and our clients and I encourage you to test it for yourself.

Send an email if you would like to see sample research and take me up on a trial of our Premium or Weekly Research where I provide actionable alerts on breakouts and reversals in broad market indices, sectors, commodities, the miners and select individual stocks  

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Disclosure: I am/we are long EFA, XLF, TLT, several stocks.