SPX In Big Trouble If It Can’t Knock This Down?
Chris Kimble | Sep 10, 2015 11:40AM ET
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.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.