Saturday, 12 March 2016

S&P 500 testing dual trend line resistance, huge parallel trend line nearby

Daily chart of the cash S&P 500 shows it closed Friday testing dual trend line resistance. Will the market continue higher in attempt to fill the gap from the beginning of January? I don't know, nobody does, but if it does so then I do have an idea about what the next and final line of resistance would be.

Zooming waaaay out now to a weekly chart of all sessions trade, showing parallel trend line resistance. If the market rallies through the nearby lines then I expect it will hit record highs within a couple of months.

Daily all sessions chart next to show a close up of the nearby parallel lines from the weekly. Another example of potential dual trend line resistance, albeit at a slightly different level to the cash market. Bottom line is, while the S&P all sessions remains below 2050, I will give the benefit of the doubt to the bearish potential of the decline that began at the 2015 peak. Above that level, I'll favour record highs within months.

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