S&P 500 IS AT A VERY KEY TURNING POINT



The S&P 500 has been in a very strong uptrend for many years showing no signs of slowing down. Right now the S&P 500 is at a very key turning point as for the first time in over 2 years, we are in a very clear short term downtrend. Price is making lower highs and the swings are also very wide and distinct, and if you have gone through our program you will understand what this means and also what occurs once price breaks out.



Notice how to the left of the recent downtrend, price was in a very tight ranged uptrend without any swings showing the dominance of the bulls. Remember that this short term downtrend does not take away from the fact that the bigger trend is still very clearly an uptrend.



The reason why this area is so important is because we are at a key turning point. If price breaks out upwards from this short term downtrend and makes a higher high, then that would mean this is just a short term correction and the bull market will continue further. Now if price instead breaks this long term trend line with bearish momentum and makes a distinct lower low, this could be the start to a trend change. As always with trading and analysis, we do not guess, we wait for the market to show its hand before we make any entry decisions.