SPX tapping top of long term channel

18 abr 2021

Here is a long term look at the SPX which has rallied strongly to the top of the parallel bullish channel. The level of interest to me is the 4500 zone marked with red box. As you can the current trend angle is 72 degrees. We have not seen an angle this steep since the rally from the 2009 lows. I would not be surprise to see a parabolic push into 4500 and then some corrective price action. My longer term analysis suggests the bull market can continue much higher than 4500 before the next bear market. However, the current angle of price trend, proximity to the channel top and fib extensions suggests a correction into 4500 is a strong possibility. I also added the phycological levels of 1000/2000/3000. You can see price often pushes past these levels then consolidates or drops afterward. Check out some of my previous SPX/SPY analysis below.