Similar to previous post using SPY, again upper trendline drawn from tops on S&P hit then fail at upper trendline resistance. When S&P hit resistance in late Dec '13 it retreated then tried to penetrate the resistance yet again in mid-Jan, only to fail and fall back sharply. Likewise, its RSI failed to confirm the new high as well.
Similarly, S&P hit upper trendline resistance on 9JUN14 then retreated and is now trying again, but seemingly failed yesterday (24JUN14). Similar to January's action, the RSI failed to confirm the new high. Today's action (25JUN14) shows snapback rally to trendline----kissing/hugging it yet failing to get above it. So, will S&P action be similar to mid-Jan14's failure then sharp retreat....or will S&P finally break above the resistance?
With extreme bullishness (Put/Call, sentiment surveys, etc.), VIX at/near multi-year lows, one could make a very convincing argument for bears here.
Similarly, S&P hit upper trendline resistance on 9JUN14 then retreated and is now trying again, but seemingly failed yesterday (24JUN14). Similar to January's action, the RSI failed to confirm the new high. Today's action (25JUN14) shows snapback rally to trendline----kissing/hugging it yet failing to get above it. So, will S&P action be similar to mid-Jan14's failure then sharp retreat....or will S&P finally break above the resistance?
With extreme bullishness (Put/Call, sentiment surveys, etc.), VIX at/near multi-year lows, one could make a very convincing argument for bears here.