Winter is Coming, Don’t Bears Hibernate?

To get some good understanding of the market or a stock, I always like to look at a long time span of its chart. Basically the longer the time span, the more accurate of a picture each technical analaysis means. Just like with research, the more data you have the more accurate of a conclusion is made.

S&P 500

The chart below shows a time span of about 4 years for the S&P 500.

As you can see, the collective gains in between that time period are almost back to where it started 4 years ago. By pulling up the retracement levels, you can see that there is potentially not much from preventing the S&P from going to $1120.

There seems to be a pretty substantial resistance at $1254. Until the S&P can break past that level, the market is still in a state of uncertainty. The S&P has hit this resistance about 4 time over a span of two years, so a move past that line could spark some good gains.

In the short term, we can see support sitting right below where the S&P is sitting right now (represented by green line). This gives us a mini trading range between $1200 and $1240. If we pass back below this min-support, then that could mean the bears start winter a little later this year. A break past could also help support the fact that the S&P could indeed be headed for $1120 or dare I say lower?

INO - Check out a FREE trend analysis of the S&P 500