Always consider hidden risks
SP500 Technicals: Back in the Main Channel ?
​October 26 ( From Tradeview )
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​​​​The Situation

​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​, ​​
​game was 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
​rebouded violently. It was a double bottom​ and the market rallied
​and for the first time since August 24, and it did finally on a
​stronger volume.

And now, not only we are testing the Fibonacci retracement 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 at 2077.
( See Second Chart Below - Grey Trendline - Ellipse )​.

​​But the most interesting factor is 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 )

 Louis Pasteur 
"Chance favors the prepared mind."

SP500 Technicals: Back in the Main Channel ?  $SPY, $SPX, $SP500  #Trading #Investing #SP500 #dxy

Monthly Chart
Back at the Monthly Major Trendlines of an old Rising Wedge ​
Dailly Chart - Candles
​Fibonacci retracement of .236% at 2071

​SP500 Index ( Candles )​​​
Correlation SP500 Index with US Dollar (DXY) ( Line Chart - Bottom Panel )