Certain signs often times demand respect. Should we respect the sign/situation below?
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“Kissing the underside of resistance” and whats its future impact could be on the S&P 500, is one sign/situation I respect a great deal. Until this resistance is taken out, from a portfolio construction angle, this situation does not suggest that portfolios should have a large exposure to equities at this time.
Should the kiss of resistance fail and an upside breakout takes place, that would be a very good sign for the broad market and a time to increase risk exposure!
Diego….the difference could be…if you are using a high/low/close or a close only chart. Could be daily vs.-weekly…log vs.-linear. Several possibilities come into play.
I’m trying to get your same pltting on the S&S500 Index, but it doesn’t look the same!
Any idea why?