What’s inside:
- SP 500 struggling to push into new record territory
- Double-top or growing base for higher prices?
- Going with latter for now Levels lines of interest noted
2017 FY and Q1 Forecasts and Trading Ideas
If the recent price action in the SP 500 were to be summarized in one word, it would be – tough. There is a battle going on around record high levels, yesterday was another testament to the struggles the market is having in its attempt to extend into and sustain new record levels. A semi-bearish key reversal bar developed on an attempt to push above the Friday high; ‘semi-bearish’ emphasized because of choppy market conditions and the fact the trend-line off the November low arrives just a short distance below.
In recent posts, we have expressed that a choppy trading environment could lead to a broader base from which the market could trade higher from. This view remains intact. If the SP starts to decline with some velocity, though, this could quickly change. A hard jab lower could further along the notion of a double-top taking shape from the December high. But until we see hard selling we will take what is presented to us at the moment.
A clear daily close above the Friday (1/6) high of 2282 opens the door up for more gains, while a minor push lower and hold of the November trend-line still keeps the current technical structure working towards an expanding base and a potential breakout down the road. Even if the trend-line were to give-way to selling, as long as it isn’t aggressive, the basing scenario will still be in play and the double-top formation on the back-burners.
SP 500: Daily
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—Written by Paul Robinson, Market Analyst
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