Stocks Meet Resistance EXACTLY at Our Level!!
The S&P 500 has broken out from the upper 3000's and made a run for higher levels. We faced pretty steep resistance from 3978, about the midpoint of our failed inverse head and shoulders pattern. We noted that failed inverse H&S patterns are usually a bearish sign, and we have been in the doldrums all week. We also noted several times that the neckline of the failed pattern would provide significant and prohibitive resistance. This is exactly what we are seeing. Though the S&P 500 has broken out, it is currently facing resistance exactly at the neckline at 4068, confirmed by two red triangles on the KRI. The Kovach OBV has trended up, but tapered and flattened with the resistance. We will need more momentum to break through. If so, the next targets are 4122 and 4144. If we retrace, then 3978 should provide support again.
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