Stock Market Technical Analysis
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In the stock market Wednesday, we had the token gap up from Tuesday night's Republican win. This move basically took us back up to the resistance level that the S&P pulled away from on Tuesday. Wednesday was the fourth day the S&P has hovered up against multiple resistance lines. Taking a look at the chart above, we can see that the S&P is up against the lower line of its steepest channel shown in blue and also up against the line drawn across from the mid September highs.
Looking at this second chart cluster, we see that in chart 2 the expanding triangle is still containing the S&P. In chart 3, the midterm channel is still containing the S&P also. In chart 4, we see a bearish RSI divergence with lower highs in the RSI as we had higher highs in the S&P. In chart 5, we see the S&P is still holding at the center line of its two-year bubble channel.
Lastly, looking at the short term channels shown in the cluster just above. The S&P is faring the best at it is actually clinging to the upper line of its 2-week uphill channel. The NASDAQ, however, took a hit today as it slipped out of its 2-week uphill channel.
Technically, the longer the S&P is contained by all these resistance lines the more bearish the situation becomes. If it continues much longer this level could become a firm ceiling for the S&P. However, with everything we have seen the past three weeks, anything is possible.
Trade well my friends