The S&P 500 on Friday pushed through the parallel trend line resistance that was my line in the sand for a near term bearish stance, as shown on the weekly chart below. So, is it time to turn bullish? The short answer for me is no, at least at the time frames I trade. The remainder of this post will provide a longer answer.
S&P 500 weekly chart. Up through blue parallel trend lines.
When there's a possibility that I should change my stance on a market, I like to have a close look at correlated markets, in the S&P 500's case, I like to check the Dow and the NASDAQ 100.
Daily chart of the Dow suggests it is forming a triangle, and is near an important test of trend line resistance. If the triangle call is correct, the trend line test would be followed by a decline in wave E.
NASDAQ 100 daily chart. Weak, by which I mean, relatively weak. If the NASDAQ is not leading the way higher, it's often getting ready to lead the way lower.
NASDAQ 100 weekly chart reinforces the view of the daily chart. This market is relatively weak, nowhere near the highs of 2015.
I'll finish with the S&P 500 daily chart. Time to be watchful. Keep a close eye on the Dow too.