Spot the Bear. Weekly chart analysis of S&P500
- Thread starter romik
- Start date
Look at the similarity between late Dec and now...which would fit with a test up around the 50d MA 1955 potentially.
thank you for the charts, it helps looking at things differently.
chris
chris
Another day, another chart. When someone says they've been doing something over 30 years and still have the passion for charting as does Oscar Carboni I tend to at least pay attention to what they have to say. He's been advocating the theory that the Transportation index leads all other indexes, so I finally decided to put his advice to the test here and now on it's monthly chart. I've applied standard price channel and compared it to other major US indexes and here is the picture (from a distance), TRAN is currently the only index to have broken and closed below the lower band of the price channel, which is a bearish sign, all other indexes either broke and bounced above it or haven't even got to it yet. Also it's rather evident that the index started heading lower from start of 2015, whereas as we know others were either stagnant or heading higher, creating a divergence. So currently it being the only index to break and close below lower band of the price channel it's again diverging from other indexes, which is why I don't feel it's appropriate to refer to the whole US equity market as being in a bear phase, it's still in a 'counter uptrend mode', only when we see other indexes follow suit it will be the time to dump as IMO all others will be dumping and according to TRAN there is another -25% to go to previous multi-year resistance zone.
