Where is the Stock Market Going?
I can’t tell you where the stock market is going.
But this monthly graph shows that we are at a very important resistance level based on a trend line that goes back to 1995. At the least, I expect some healthy resistance.
If we don’t go through the resistance level, I would expect the S&P 500 to retest the 750-800 level.
(Click to enlarge.)
S&P 500 Weekly Chart from 1995
You can see the very large double top that formed and that’s not a good sign. But the market has made a nice recovery from its lows to this resistance level. What it does over the next couple of months should tell us something about what we can expect over the next few years.
Technically, it’s still in a long-term downtrend because the current high is nothing close to the previous high and the most recent bottom in September of 2008 was lower than the bottom before it and has not been tested.
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