SPX500 Touches Channel Resistance
Updated
SPX500 posted a new high today. Touched channel resistance and backed off a bit, but no overwhelming selling.
Still, this channel has been forming since Jan 2018. Tested 3 times in the past and held as resistance.
Previous all time high made earlier this year 3025 was tested a couple times today. Quick spike down pierced support (possibly targeting stops), but there were buyers there also.
From a technical standpoint, it will be be hard for bulls to sustain a breakout of the top side of a rising channel. Conservatively, one might wait for attempted breakout, see how price reacts above the channel. (Another stop hunt, but also liquidity for institutional shorts)
Fed gave the market it's rate cut, but little else to be bullish about. (if even that can be considered bullish)
Complacency creeping in. Look at VIX daily.....
themarketear.com/posts/c-zOpBNgTc
themarketear.com/posts/cPN2stYutn
Still, this channel has been forming since Jan 2018. Tested 3 times in the past and held as resistance.
Previous all time high made earlier this year 3025 was tested a couple times today. Quick spike down pierced support (possibly targeting stops), but there were buyers there also.
From a technical standpoint, it will be be hard for bulls to sustain a breakout of the top side of a rising channel. Conservatively, one might wait for attempted breakout, see how price reacts above the channel. (Another stop hunt, but also liquidity for institutional shorts)
Fed gave the market it's rate cut, but little else to be bullish about. (if even that can be considered bullish)
Complacency creeping in. Look at VIX daily.....
themarketear.com/posts/c-zOpBNgTc
themarketear.com/posts/cPN2stYutn
Note
1 hour shows smaller channel resistance also being tested.
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