Wednesday, 14 January 2015

S&P 500 rally from the 2009 low has followed two trend channels perfectly

Arithmetic scale weekly chart. Upside potential appears limited. A weekly close back inside the black channel would complete a false upside break and suggest the rally from the 2009 low is complete. There were two false intra-week breaks back in to that channel last year. The top line of the black channel currently sits around 1920, and I would not be surprised to see this level tested in coming weeks.