Wednesday, December 28, 2016
SPX and RUT: Is SPX Finally Ready to Resume the Trend?
For the past couple weeks, we've been viewing the recent move as a consolidation/continuation pattern, and there's still no material change -- though it is quite possible that SPX is finally ready to break out of this chop zone and start heading higher again. Note that yesterday it cleared the upper red resistance line, then came back down to back-test it:
RUT has also formed a second, and so-far-successful, back-test of the breakout from its uptrend channel:
In conclusion, this is, theoretically, the "easy" part of a move; and barring something bizarre, higher prices are still expected across the board. Short-term corrections will occur within that framework, but the broader trend still remains up for the time being -- and, for now, anyway, that also applies to the foreseeable future. Trade safe.
Posted by PretzelLogic at 4:22 AM