A week ago today I shared the chart below… asking if it “was a stretch to believe the market could rally up to key resistance?” (see post here)
The “Power of the Pattern” looked to favor a rally in the chart below….up to the 1,320-1,340 level in the 500 index at (2) below.
CLICK ON CHART TO ENLARGE
Now what does the 500 pattern look like after the rally?
CLICK ON CHART TO ENLARGE
The “Rollercoaster” ride continues….as the rally last week took the 500 index from the bottom of the channel back to the top of the range.
Some in the media are calling the rally the best week in 2 years…. did it accomplish a ton on the charts? Not really!
With the 500 index at the top of its channel, up against numerous resistance lines and the the 23% Fib level (not shown), odds favor the back and forth action remains for a while!
If a breakout of this channel takes place….I will follow!
Would be a real plus for the broad market if the Bull leaders break this key resistance. (see post here)
