March 25, 2017: New comments S&P500
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Please look at all charts, monthly, weekly and daily before making your own conclusion. You can find HERE a description of the chart template used.
This text will generally only be adapted once every month. The chart is updated until 03/24/2017. The chart template is explained HERE.
Last month I wrote: "January is not closing lower but slightly higher. We still have the ending wedge pattern and the index is still not reaching the median line of the up moving pitchfork. The Stochastic RSI indicator is topping and price is far away from all averages. Not much has changed last month so, my expectation is still the same, the start of a long term correction the coming month(s)."
February is closing higher. The ending wedge pattern is still there but, we crossed the median line of the up moving pitchfork. On the other hand the index comes close to the upper side of the volatility channel. The stochastic RSI is still topping and price remains far away from all averages. Since we can still see a convergent move between the index and the indicators, I doubt if the longer term down reaction will start the coming month already. My opinion, the chance to move still higher the coming month of March has a better chance. The last long term up move started some 8 years ago. Some month the long term reaction will start and bring the index down possibly to a 50% retrace of this long term up move! Buying at current high levels may therefore be very risky. You must be prepared to get out with an acceptable loss don't, wait too long...
For FOREX traders, here I keep FOREX EUR/USD updated charts.