Always consider hidden risks
SP500 Technicals: Back in the Main Channel ?
October 26 ( From Tradeview )
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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
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 )
"Chance favors the prepared mind."
SP500 Technicals: Back in the Main Channel ? $SPY, $SPX, $SP500 #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 )