Last week I shared that “hope was not a strategy” and referenced long-term support and resistance channels. (see post here)
From a long-term channel perspecitve, the S&P 500 is within 4% of a support line that needs to hold…see below.
CLICK ON CHART TO ENLARGE
Rising channel support that “NEEDS” to hold is a few percent below current prices. At this time I remain out of the stock market and am net short. Will look at protecting gains achieved by scoring on defense around support (2) in the above chart. Will see how the events unfold, per where is Gold and sentiment if the S&P hits the 1,050-1,100 level….this will determine if we harvest gains and if it is a time to go long.
Remained concerned for long investors if support line gives way at (2)!!!