Looks like downtrend in spite of record earnings. Maybe this is from interest rates rising from near zero. (From 1942 to 1982 interest rates rose from record low to record high. Now that US dollar is being replaced by China Petro-Yuan, the US government will have to sell more Treasuries to fewer buyers to cover bigger deficit spending, which could drive up interest rates if the Federal Reserve doesn't buy more Treasuries. Instead of buying more Treasuries the Fed promised to sell more Treasuries, so interest rates will go up. If you bought stocks when interest rates were record high and declining, as in 1982, you had 18 year bull market in stocks. But now interest rates are super low and rising, which is opposite of 1982, so people afraid stocks will enter long bear market.)
But when SPX gets down to 2500 it will be at bottom of the channel and could rise up to 3200 by end of 2018.
But when SPX gets down to 2500 it will be at bottom of the channel and could rise up to 3200 by end of 2018.
Comment:
Trend channel held, so I think it will continue in channel at least until mid 2019 and it looks like it could reach a high of 3400 in 2019.
Trade closed: target reached:
Trend channel was simple and effective and the prediction worked so well.