One of the most common ways to get an idea of how the general market is doing is through an index that tracks the “market.” Today, the S&P 500 (SPX) is trading in a “middle of the field” formation.
It has been ranging, forming a fair base of accumulation between its March lows and May highs of this year. The trend of SPX remains positive, but it did test it back in May and June of this year. Notice how SPX fell to $2070, nearly hitting the bullish support line, then over the last few weeks, the SPX has touched but has not broken the bullish support line. Evidence of a ranging formation can be seen looking at the bullish support line. See how it has shifted sideways four times at the $2070, $2080, then $2070, and finally at $2080, confirming the importance of this support for the SPX going forward.
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