15 YEARS S&P WEEKLY Chart -HUGE Resistance - Selloff coming??
Title says it succinctly right there.
Details: This 15 YEAR WEEKLY chart shows MACD on top and Price on bottom. For those BULLS saying we have a V shaped recovery and the market is going higher look at this WEEKLY chart and resistance levels. Notice that weekly 39 EMA correlates well with market direction for the last 20 years.
On the MACD the Blue line shows its well below ZERO which is a weekly downtrend. (These are just 2 ways to show trend direction and resistance and support)
Anyway, Notice that we are at a band of horizontal resistance (light blue lines) and at the SAME TIME rising uptrend top/resistance of one of the channels. IF the top portion of the channel is breeched it has been for about 1 year before a BIG drop (purple rectangles). Those times have been when we had velocity of money (people spending) and fundamentals looking good overall. Do you really think we will broach the upper trend channel and resume the uptrend channel given that we have ZERO velocity of money?? NO one is spending money and businesses are going bankrupt....
Selloff coming?? I think very soon. Good luck.
Details: This 15 YEAR WEEKLY chart shows MACD on top and Price on bottom. For those BULLS saying we have a V shaped recovery and the market is going higher look at this WEEKLY chart and resistance levels. Notice that weekly 39 EMA correlates well with market direction for the last 20 years.
On the MACD the Blue line shows its well below ZERO which is a weekly downtrend. (These are just 2 ways to show trend direction and resistance and support)
Anyway, Notice that we are at a band of horizontal resistance (light blue lines) and at the SAME TIME rising uptrend top/resistance of one of the channels. IF the top portion of the channel is breeched it has been for about 1 year before a BIG drop (purple rectangles). Those times have been when we had velocity of money (people spending) and fundamentals looking good overall. Do you really think we will broach the upper trend channel and resume the uptrend channel given that we have ZERO velocity of money?? NO one is spending money and businesses are going bankrupt....
Selloff coming?? I think very soon. Good luck.
Comment:
Looks like today was the reversal day. Did you SELL?? I suspect we may try to retest the highs or near the highs around 2900 again this week but come May I think we are headed lower. Either way we are profiting. Good Luck.