I have been observing the S&P for some time and noticed this interesting development:
The long term weekly Moving Average appears to be acting as resistance for the S&P. Initially, I thought that an inverse head and shoulders pattern was forming with a target of 1200 to 1220. Now it seems that we may have either a trading range or even a double top forming around 1185 as the daily chart below shows:
Notice that MACD has turned downward and volumes have trended down over the past six months. To complicate the picture we have a golden cross that just formed. But sentiment is very high - are we seeing a double top or not?
I am not that great at technical analysis, so is this the case or is the market telling us something else?
The long term weekly Moving Average appears to be acting as resistance for the S&P. Initially, I thought that an inverse head and shoulders pattern was forming with a target of 1200 to 1220. Now it seems that we may have either a trading range or even a double top forming around 1185 as the daily chart below shows:
Notice that MACD has turned downward and volumes have trended down over the past six months. To complicate the picture we have a golden cross that just formed. But sentiment is very high - are we seeing a double top or not?
I am not that great at technical analysis, so is this the case or is the market telling us something else?
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