Thursday, 10 March 2016

S&P 500 testing resistance, big picture trend transitioning from up to down

I've been bullish recently. No longer. Time to put that stance on hold until/unless the market can beat nearby trend line resistance and levels.

S&P 500 daily chart. Testing resistance.

Monthly chart next. The market looks to be in transition from up trend to down. Currently trading between the 40 and 18 period moving averages. Favour continuation of the transition to down trend unless the market beats the 18 period moving average, something it failed to do when transitioning to a down trend in both 2001 and 2008.