Sunday, 9 December 2012

S&P 500 trade the fifteen year old channel, until it breaks

In September and October the S&P 500 tested the top line of a fifteen year old trading channel/range, then turned lower. The bearish MACDH divergence supports the case for further decline from nearby current levels. That said, seasonal influences are currently bullish, so another trend line retest cannot be ruled out, but is certainly not required.