This chart looks at the NYSE index over the past 20-years. During this time frame, this broad index has spent the majority of the past quarter-century, inside of rising channel (1).
It broke above the top of the channel in 2016 and it experienced a very strong 12-month rally. Since the first of this year, it has created a series of lower highs and lower lows. Weakness this year has it nearing a test of support, which is the top of this 20-year rising channel. While nearing this key support test, it is also nearing another test of a rising support line at (2).
Support is support until broken and this index looks to be near a very important support test at (2).
If support fails to hold at (2), this broad index would be suggesting that the long-term upward trend in stocks is now turning lower. Keep your eye on what this broad index does at (2) friends, as it could send an important message to the bull case.
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