The S&P 500 Is Approaching Major Resistance! Tracking 2008 (ES)
Hi friends! Welcome to this update analysis on the S&P 500, via the E-Mini Futures contract. Looking at the chart, you can see that the S&P is running into lateral overhead resistance (red zone) where several pivot highs were formed. Additionally, price is getting close to what could act as the top of a downtrend channel (in blue.) When compared to the price action in 2008, leading into The Great Recession, there are a lot of similarities here, which I have covered in previous analyses. Basically, price formed a head and shoulders and broke down to the bottom of the blue channel, then rallied hard to the upside, just as it did in 2008. Now, in 2008, price never got back above the head and shoulders neckline (in pink.) Clearly, that isn't the case with today's market. Price has rallied well above the neckline of the head and shoulders pattern, and is now reaching major overhead resistance.
As you can see by the giant red arrow pointing downward, I think price could soon put in another major pivot high. The RSI is now in overbought territory, and the MACD is running into overhead resistance (red trendline.) Obviously, we could continue higher, but the resistance on the price chart, as well as the resistance on the indicators, indicate that the upside may be extremely limited at this point. So, I expect to see a major pivot high soon, followed by a devastating decline.
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I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
As you can see by the giant red arrow pointing downward, I think price could soon put in another major pivot high. The RSI is now in overbought territory, and the MACD is running into overhead resistance (red trendline.) Obviously, we could continue higher, but the resistance on the price chart, as well as the resistance on the indicators, indicate that the upside may be extremely limited at this point. So, I expect to see a major pivot high soon, followed by a devastating decline.
Be sure to hit that follow button, and find me on Twitter, via the twitter link on my profile page, for more MagicPoopCannon content!
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-