The S&P 500 is about to decide whether it rips to new highs or falls 20%. The index is at a crossroads, sitting in both a seven year rising channel and a one year falling channel.
In the short term, expect the S&P to gravitate towards 2,025, which represents falling resistance of the one year down channel and the 200 day moving average.
If the S&P can decisively break above 2,025 - 2,050 with high volume, expect the market to continue its seven year up trend and potentially reach new all time highs.
However, if the S&P is rejected at the 2,025 area, and breaks below rising support of the seven year channel, expect the market to make new lows.
1,575 is a long term target for the S&P if it decisively breaks below the seven year rising channel, representing downside of 20% from today's close. 1,575 represents the previous highs of 2000 and 2007. Old resistance tends to become new support, and vice versa.
In the short term, expect the S&P to gravitate towards 2,025, which represents falling resistance of the one year down channel and the 200 day moving average.
If the S&P can decisively break above 2,025 - 2,050 with high volume, expect the market to continue its seven year up trend and potentially reach new all time highs.
However, if the S&P is rejected at the 2,025 area, and breaks below rising support of the seven year channel, expect the market to make new lows.
1,575 is a long term target for the S&P if it decisively breaks below the seven year rising channel, representing downside of 20% from today's close. 1,575 represents the previous highs of 2000 and 2007. Old resistance tends to become new support, and vice versa.
The Wall Street Fox
The Wall Street Fox utilizes fundamental and technical analysis to generate investment ideas. TWSF holds a MBA, and is currently preparing for the Chartered Market Technician (CMT) designation.
Website: http://thewallstreetfox.com/
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