S&P 500 Chart – Hitting Resistance
I charted daily prices for the past six months of the S&P 500 ($SPX) on Friday, July 24, 2009 when it closed at 979.26. I drew a handful of trend lines and came up with the five lines I left on the chart below.
The big trend line offering resistance is the line of higher highs that started at the end of January 2009. The SPX came close to it in early May and then touched it twice in June and now we’re back up to it again for another test. The short vertical lines I drew in July show the steep trading channel we’ve been in over the past couple of weeks. It’s been steep and has only offered a two down (aka distribution) days in the past 10 days.
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Comment by Learn Stocks
I agree. I think the s&p500 is overbought at the moment. It has been a nice run upwards. I think there will be another run down before we go up again.