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The S&P 500 remains inside of a 5-year rising channel, shaded in green. The S&P back in August hit dual channel support at (1), which held.
Earlier this year, the S&P hit the top of channel (A), which held as resistance for months.
The 10% decline in late summer, saw investor sentiment hit levels last seen at the 2011 lows. Of late sentiment indicators hitting optimistic levels has started to increase again, after the strong rally in October.
The S&P is just a couple of percent away from the top of its 20-year rising channel. How it handles this channel at (2), should go a long way to telling us where the broad market will be six months from now.
Humbly, I feel this long-term channel should not be overlooked for its importance on future prices of this key index.