SPX SPY Strong Overhead Resistance on Monthly Chart
Updated
This resistance is about as strong as it can get. It's an overhead trendline that goes back to April 2012 and shows up the best on the monthly and weekly charts.
I'd imagine institutions are looking at this in terms of probability. I think it's reasonable to believe that this trendline will suppress the rate of growth going forward, but as we've seen in the past, a steady uptrend from here is very possible, although the previous time that price touched this line we saw a decline back to the 200 week moving average.
In the grey boxes I measured from the 200 week moving average to the peak of the previous expansions. This may help in determining what type of growth we can reasonably expect from the 200 week moving average.
I'd imagine institutions are looking at this in terms of probability. I think it's reasonable to believe that this trendline will suppress the rate of growth going forward, but as we've seen in the past, a steady uptrend from here is very possible, although the previous time that price touched this line we saw a decline back to the 200 week moving average.
In the grey boxes I measured from the 200 week moving average to the peak of the previous expansions. This may help in determining what type of growth we can reasonably expect from the 200 week moving average.
Note
Also the 1.68 is a very popular area for institutions to take profit. Something to be aware of.
My goal is to find the best risk:reward setups. For instance, if you risk $1,000 at a chance to make $5,000, you can afford to be wrong 4 out of 5 times and still not lose money. I hit my targets over 50% of the time.
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