For the past couple of years, the S&P 500 has remained inside a uniform rising channel, highlighted in blue above.
On August 21 it broke below that channel, ending the two-year pattern.
After the break the S&P attempted rallies, knocking on the underside of old support as new resistance twice.
One of them happened on Wednesday, as the S&P 500 was up strongly for most of the day. It got real close to the underside of the channel, creating a reversal pattern commonly known as a bearish wick, near the 2,000 level at (1) above.
The 4-5 year rising channel trends are still play, yet the shorter-term, 2-year channel has now been broken to the downside.
The S&P is knocking on the underside of a new resistance channel. For it to continue higher, S&P 500 needs to first knock down resistance and get back above its 2,000 level.
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