Only twice before the present period has the S&P tested the very top of the channel and both times were met with substantial subsequent pullbacks. Now, having substantially exceeded the channel for some time, the S&P has just begun to puncture its way back in. This could be a blow-off top that brings stock prices back to the reality of sustainable growth. I expect such a violation of the top of the channel will be met with an equally vicious correction that breaches the bottom of the channel potentially bringing 2600 into play.
Note
Loading the new bars on this chart shows S&P violated regression channel support as anticipated. Now on its way back up, it looks possible it might find the channel support as resistance temporarily.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.