Always consider hidden risks
SP500 Technicals: Resistance Trendlines ?
December 1 ( From Tradeview, Stockcharts )
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We have been in one of the most Bullish Stock Market in history
since 2009. The Mighty SP500 Index from a low in March 2009
of 666.79 to the high ever on May 2015 at 2134.71 rose by a
factor of 3.2 spurred by low interest rates and strong buybacks
from US corporations.
In fact, when we broke a Rising Wedge Pattern on August 21 2015,
over on SP500 on a short term basis and then reached
then the panic selling level
on August 24 at 1867.01.
( See 1rst Chart Below - Bottom Grey Trendline )
We almost reached on September 29 the Daily Low of August 24 and
It was a double bottom and the market rallied
and for the first time since August 24, and it did finally on a stronger
Since then, a huge rally occured but market internals
continue to deteriorate: US Stock Indices Technicals: Generals on the Front Line ?
And now, not only we are testing the Fibonacci retracement zone of .236% at 2071 ( From peak price on May 20 to the Low price on August 24 ) ( See 1rst Chart Below - Top Red line - Ellipse ) , but we are also back at the Monthly Major Trendlines of an old Rising Wedge that started back on October 2011. Close but no cigar yet.
( See Second Chart Below - Grey Trendline - Ellipse ).
Observe the correlation between the Mighty SP500 Index with the US Dollar Index (DXY). And we are back in the last few days already into the zone where we usually at risk to see a short term market downleg as history suggest. ( See last chart below at the bottom - vertical lines )
But the most interesting teschnical factor is that we tested the Daily Resistance Trendline of the Old Rising Wedge Pattern ( August 21 2015 Break Down Trendline ) that started back on December 16 2014 and failed to close above. Resistance level for December 1 at 2098.6( See 1rst Chart Below - Red Trendline - Ellipse )
"Chance favors the prepared mind."
SP500 Technicals: Resistance Trendlines ? $SPY, $SPX #Trading #Investing #SP500 #dxy
Back at the Monthly Major Trendlines of an old Rising Wedge
Fibonacci retracement of .236% at 2071
SP500 Index ( Candles )
Correlation SP500 Index with US Dollar (DXY) ( Line Chart - Bottom Panel )