S&P 500 Technical Hocus Pocus

Some downward movement

The S&P 500 hasn’t being doing well lately:

What we see in the chart above is not normal. Normally, the market should go up and people should make money and everyone is happy. But, it just keeps going down, all through the year.

However, if we look to the last few days of action, there might be something of a base forming. I don’t know that for sure, of course, but when you want to see something you can trick your mind into seeing things. I want the market to go up, so I’m imagining a bottom forming that will be the start of a new uptrend.

On the flip side, we may still be in a downward channel:

This chart looks more pessimistic than the other one with the addition of these two arbitrary lines. On the other hand, there could be some hope that the S&P 500 smashes through that upper line of resistance to begin a new upward regime.

Truth is, I don’t know and no one else does either. It’s all about your own view of things and, sometimes, lucky timing. If you had money to invest six months ago but didn’t invest at the time then maybe this big discount is a welcome opportunity!

At some point, there will be a bottom. After all, the market surely won’t go below zero! Although, they said the same thing about oil prices…