“On its daily chart the S&P 500 made two significant changes recently. First, it found support in the low 2,700s, where a previous decline was halted in early March. Second, the rally from 2,728 in early June created a new upward sloping trend channel going back to the late December low of last year. The upper boundary of the new channel is well over 3,000 and the lower boundary currently sits near 2,800. The S&P 500 is now in the middle of the new trend channel. While the all-time high at 2,954 is tantalizingly close, there remains some resistance to cut through (dating back to the highs of last September and more recently in late-April). This is proven “seller’s territory” and the bulls have yet to absorb all the selling and establish supremacy in this area; but the bulls will eventually win out. The Index’s May pullback and June recovery is still best interpreted as part of a larger and healthier corrective period that has more to go. But June’s rally shows that many bulls are impatient – they want to push higher, quickly. If a sustained move above the all-time high at 2,954 does happen, treat it as a major upside breakout.” (19-Jun-19) Ron Meisels & Dave Tippin, Phases & Cycles, Montreal, QC, Canada www.phasescycles.com
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