this is the daily candlestick chart of the S&P 500. You can set it up for yourself on their web site and track the trend channel in the chart above.
Price is gradually floating up within a trading range. Eventually all trading ranges break one way or the other. I think that this will break to the downside soon, like within days to weeks. By break I mean it the candlestick closes below the trendline and then is followed by additional closes below that channel low.
Buyers make prices go up, if prices are not going up that means buyers are not stepping up. This kills the upward momentum we've had which is already at all time highs and induces smart money bulls to take profits and smart money bears to short sell the market. This process accelerates and causes sell offs.
Since we are at such elevated levels on the S&P 500 I expect for a flush to occur with an initial drop to 3580 within days of the channel break. The question is will that trigger further selling or will dip buyers step up. I think more selling will unfold.
The important thing though is to initially focus on that channel low to see what the market is thinking. If it holds, then the float up continues. If it breaks, look out below!
https://www.investing.com/indices/us-spx-500-futures-advanced-chart
this is the daily candlestick chart of the S&P 500. You can set it up for yourself on their web site and track the trend channel in the chart above.
Price is gradually floating up within a trading range. Eventually all trading ranges break one way or the other. I think that this will break to the downside soon, like within days to weeks. By break I mean it the candlestick closes below the trendline and then is followed by additional closes below that channel low.
Buyers make prices go up, if prices are not going up that means buyers are not stepping up. This kills the upward momentum we've had which is already at all time highs and induces smart money bulls to take profits and smart money bears to short sell the market. This process accelerates and causes sell offs.
Since we are at such elevated levels on the S&P 500 I expect for a flush to occur with an initial drop to 3580 within days of the channel break. The question is will that trigger further selling or will dip buyers step up. I think more selling will unfold.
The important thing though is to initially focus on that channel low to see what the market is thinking. If it holds, then the float up continues. If it breaks, look out below!