S&P 500 Index (SPX) – Weekly Chart
As seen above the S&P 500 Index still remains in an up trending wedge (green lines) however for the last two weeks the index has stalled under a secondary downtrend line (red line # 2). While two weeks of stalling at resistance is not a major concern yet it does at very minimum raise a cautionary tone given the S&P 500 has had such a large, uninterrupted advance.
Weekly momentum as measured by the Relative Strength Index (RSI) has remained neutral while the S&P 500 has rallied. However until near term supports are broken near 1,050 then 1,026 it is hard to get too negative.
So to reiterate some yellow lights are flashing but the bottom line is the trend is still up and remains intact and only a move below the 1,050 then 1,026 level would be viewed as a negative.
From a portfolio management perspective we would tighten up stops on profitable positions and
reduce (or hedge) long side exposure if the above mentioned levels are violated.
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