1. Smooth and steady climbing of the Index throughout years.
2. Just before a major reversal we see a price action widening and increase.
3. reversal following a close below the Fast MA line.
As you can see, since 2015 we are inside the trading range period. It is wider than before and that probably due to the level of engagement of central banks in the markets.
After the elections SPX bounced from the Fast MA line and therefore didn't provide the trigger... instead, it provided a one with strong reaction to the MA line.
Things look like we still have some more upside in SPX but it is limited. We are probably in a wide distribution phase and it'll end when SPX will close again below 2000 (below the Fast and 50 MA lines)
Read more about what's in store for 2017 in this week's newsletter (link in signature)