Technical Talk: S&P 500 remains in upward channel, for now
The comments below were provided by Kevin Lane of Fusion IQ.
As seen below the S&P 500 Index is clearly well above the April/May peak (red lines). Additionally, the index remains within the confines of a large bullish upward channel (green lines). Lately that upward trend has accelerated and a small channel (purple lines) has formed within the larger channel. This channel targets up to 1,300 and aligns with the upper end of the larger channel.
For those with a more narrow focus, near-term support lies near 1,245, while better support lies in the recent range near the April peak (1,226 to 1,215). For our investment style it is the latter support we are more concerned with as a pullback to there would still be seen as just a normal market gyration. Only a break below that would turn us more cautious.
Source: Kevin Lane, Fusion IQ, December 22, 2010.
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