Einstein suggested the 500 index (on support) and TLT (resistance) were at Polar opposites last week (see post here) .
What did the rally of last week achieve in the 500 index? See update below.
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The rally of last week took the 500 index from support to resistance in a week.
The back and forth action since the August 1 highs could change, yet a breakout has to take place at (2) before the choppy action will end. Keep in mind this resistance is very key on a longer term basis as well reflected in the chart below (See post here)
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The chart above was created the day after the 450+ rally of last week, which reflects resistance is still in place, dating back to the 2007 highs. The back and forth action isn’t fun for the majority of investors and until resistance/flag is broken, more of the same will follow! Boring for sure!!
IF enough bulls can break resistance, I would want to own a breakout!
Tom…weekly close above would be tons better than a day.
Watch KRE/Bank Index(BKX)-Broad market, including the Russell needs them to go along for the ride. KRE needs to break the falling resistance cited two days ago.
Chris,
You noted that 750 on the R2K has been serious resistance.
I SO want to see an upside breakout.
Would a 1 day close or weekly close above 750 suggest great short term rally ahead?
Thanks!
Hi Chris,
That SP 500 monthly chart (both monthly close and monthly high/low/close) looks to be forming a pretty massive head and shoulders. Am I right in seeing that?