Friday, 21 September 2012

S&P 500 breaks higher, weekly chart suggests that's all the correction we'll see for now

The S&P 500 has broken higher from a corrective trend channel, as shown on the hourly chart below.

The weekly chart below suggests that this week's correction is all we are going to see for now, as it has completed a retest of the top of the trend channel that contained S&P 500 trade since mid 2009. If (if) the markets I track continue to float up and down together as illustrated in last night's post, then don't expect sustained weakness in any of them so long as this week's S&P low holds.