Friday, June 11, 2021

SPX Update: An Interesting 92 Year-Old Channel Line...

I went round and round with Stockcharts tonight, so don't have much time left and will let the charts do most of the talking.

First up is an old, extremely-long-term chart that was buried in a no-longer-used chartbook of mine:

Next is another long-term chart (which doesn't go back nearly a century to find a connection point):

Finally, the near-term chart:

In conclusion, when we examine the very-long-term charts, we may get a clue why SPX is acting so screwy lately.  It's testing some major long-term levels, which seem to be short-circuiting the near-term a bit.  While the original read of a B-wave high, C-wave decline ended up being correct, the market is far from clear on what it wants to do next, so we'll just have to await a bit more info.  Trade safe.


  1. Charts and Indicators are useless in this environment. if you can have top brokerage firms ignore a blueprint for early pandemic model spelled out in 1917 we can certainly ignore spike used car prices, housing insanity, Game Stop nonsense, Bitcoin Tulip Mania. The dollar and yields listened to the FED calling this all as transitory. Only when the street sees reality is not conforming will we have a huge swift rebalance. Enjoy the show because it happens so infrequently.

  2. History books will place this time along side the great depression questioning our sanity and utter disregard for rowing on waters that end in a waterfall. Insanity in our dismantled political system pretending everything is normal, so why should the economy be any different. Bitcoin only buys you a nice car today. I await the purchase of a house. Tulips had more intrinsic value.