S&P Index Chart Analysis
- S&P500 has been an upward trend channel since end April. Recently in early June market found supply at the top channel trend line where bulls started taking profit and bears thought it was a good level to sell down.
- This led to a long candle right down to the bottom trend line where bids were removed. When majority of the market thinks the market will move down, market participants remove their bids – why buy in between when you think you can get it lower?
- Market then rebounded from the exhaustive downward move back to the middle of the channel and is currently in a tight sideways range setting up for a breakout up or down with the channel lines as targets.
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