FX:SPX500 S&P 500 index of US listed shares
Typically, elongated rising ( like the one seen in the SPX500 right now), tend to resolve to the downside. Also, over the past few weeks, bulls have failed to reach the top end of this . And, in the past 48 hours, the SPX500 is threatening to leave two major false - break patterns and a dragonfly pattern. These are characteristics of a either a significant top or potential distribution pattern. Moreover , anecdotal evidence is pointing to investor complacency which too is often associated with key peaks of price action. With other major indices starting to show kinks in the armor, look for bears to aggressively test the lower bounds of the . A potential breakout would likely retrace a quarter of the entire 2 year advance.
yes its valid...in fact a colleague pointed it out to me a few weeks ago then again last week..last week was certainly an exhaustion and now we have a channel set up in place...I like to draw a fibonacci channel to help me gauge how strong the recovery is...also watch the 200 day ma