S&P 500 bulls best hope support holds right now!!!

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An important "Dual Test of support" is at hand right now for the 500 index. Long investors best hope it holds, because the support line off the 2009 low is very important!  FYI- Support is Support until broken!

Twice over the past 12 years, the 500 index broke support lines of these rising wedges at (1) in the chart below and prices fell off quiet a bit.

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The above chart reflects how important it is for the "Dual Support to Hold" in the top chart at (1) to hold!

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Largest Bearish Head & Shoulders in 100 years?  

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11 Comments

  1. [...] Crunch time for the bulls – the S&P is laying down on major support like a sweaty Kelsey Grammar in post-coital fatigue on a much younger woman.  (Kimble) [...]

  2. [...] technical analyst Chris Kimble points out that the S&P is testing critical support in the way of forming a bearish [...]

  3. If prices do break downward here, looks like we might be forming a massive head-and-shoulders pattern. I’m not saying this is about to happen, but it is something to watch.

  4. Gordon….Thanks for the comment and agree with your observation

    Largest Head & Shoulders in 100 years? Could be (See massive H&S post here)

    I appreciate your viewership and thoughts Gordon,
    Chris

  5. Keep up the great work Josh!!!

  6. What is your target level for a pullback here, Chris?
    I have been thinking to wait for a pullback to 1405 before going short. What’s your plan?

  7. I noticed that too obvious patterns often are not realized. In fact, most of the patterns that you observe and that occur are more complex to discovered by most traders. You also use a combination of chart analysis, sentiment analysis and intermarket analysis to better exploit the market signals.

    It’s correct what I say or it’s a self created hope for S&P500?

    Thanks

  8. Belsha….I am short other areas, than the road more traveled by most investors (S&P 500).
    Without getting really ugly a rising channel support line comes into play around 1,200.

    Russell is breaking a support line off the 2009 lows, not pretty!
    C

  9. Apha…I don’t always do it by any means…yet I do attempt to find a more complex pattern or ones that are overlooked. Its all about treasure hunting!

    Money is buried all over the word, the key is the “reading of the treasure map” that investors lay out in front of us all!

    Chris

  10. Chris, the last times the SP fell considerably, it would first retest rising channel support as resistance (“kiss of death”) before falling, creating approximative double tops. However, recent rising support is so steep, the SP would actually have to make a new high in order to test it (around 1490). What do you think of this?

  11. Your observation is true about how high the 500 would have to go to kiss resistance.

    The wedges in this post still worked despite steep support lines (see third time a charm)

    C