The Daily tf of the SPX (S&P500) is shown in this chart from May 16, 2018 to Friday close (December 07, 2018). Commentary is provided below in an ascending order based on the numbers marked on the chart:
(1) A break below the bullish trendline that lasted over 2 years has seen price action in the SPX meander between 2 converging lines. Chart pattern that best describes the sideways action after price closed below the trendline is a symmetrical triangle that is tentative. Implications of the triangle include a stalemate between bulls and bears, as well as continuation of the current trend (bearish) upon price breaking out of the triangle.
(2) ~2606.08 and 2540.33 is marks the region of underlying support for the SPX. Price closing below 2540.33 especially indicates more selling/bearish action.
(3) A bearish channel (tentative) is also drawn on the Daily timeframe that should be taken into consideration should price action continue to resolve downwards.
(1) A break below the bullish trendline that lasted over 2 years has seen price action in the SPX meander between 2 converging lines. Chart pattern that best describes the sideways action after price closed below the trendline is a symmetrical triangle that is tentative. Implications of the triangle include a stalemate between bulls and bears, as well as continuation of the current trend (bearish) upon price breaking out of the triangle.
(2) ~2606.08 and 2540.33 is marks the region of underlying support for the SPX. Price closing below 2540.33 especially indicates more selling/bearish action.
(3) A bearish channel (tentative) is also drawn on the Daily timeframe that should be taken into consideration should price action continue to resolve downwards.
