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Should investors protect their holdings in the S&P 500 right now?
The S&P 500 remains inside of this well defined rising channel and is at the top of this channel again, for the 4th time since 2010. At the she same time a resistance line drawn off the 2007 double top is coming into play at this time.
The trend in the 500 index remains up, stay tuned to see what is does in the next couple of weeks, this price point could become important.
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Fernado, Thanks for your viewership and this question. As you know $RUT has been in a sideways channel for around a year and has diverged in a negative way, against the S&P 500. If $RUT breaks down from this sideways channel, I am with you, it could well impact the broad markets. I am watching the shoe box and high yield “Funds” very close right now. I am seeing some divergences in junk I haven’t seen in a long time.
All the best and hope this helps, Chris
Hi Chris,
I would be interested in knowing your opinion on RUT, the daily chart is developing a massive pennant since mid November. I think it will provide the clue as to where the rest of the market is going, SPX cannot outperform it forever.
Best,
Fernando