Always consider hidden risks
SP500 Technicals: Major Support Trendline in Jeopardy ?
January 20 ( 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, market internals continue to deteriorate:
US Stock Indices Technicals: Generals on the Front Line ?
And now, we are testing the Low price on August 24 ( See 1rst Chart Below - Bottom Grey line - Ellipse ).
But the most interesting technical factor is that we are testing the Daily Major Support Trendline that started back on October 15 2014 and near of a break down. ( See 1rst Chart Below - Grey Trendline - Ellipse ) And looking at a bigger picture on a Monthly Chart ( See second chart below ), we can see that if we break this support trendline mentioned above, then the next major one that started since March 2009 is quite far below of today s level. ( See second chart below, Blue Trendline )
"Chance favors the prepared mind."
SP500 Technicals: Major Support Trendline in Jeopardy ? $SPY, $SPX #Trading #Investing #SP500 #dxy
Monthly Chart - Candles