Stock Market Viewpoint

Stock Market Viewpoint
Reading the Tea Leaves...

Saturday, April 2, 2016

Indices Close Friday at Major Resistance

The S&P 500, Nasdaq, QQQ, and XLF all four were squeezed right up to major resistance Friday afternoon.  The S&P and QQQ are in virtually the same situation as they are both up against their one-year and two-year upper channel lines simultaneously.  The Nasdaq is up against one major channel line but it is a clearly defined and well honored two-year channel line.  The XLF was rejected by the center line of its two-year channel recently and it is now caught in a steep short term declining channel shown with green lines.  

Next, taking a look at how Monday is looking I posted the sixty minute bars chart below.

We can see that the S&P closed Friday at the upper line of the new channel being established (shown in blue).  Considering the S&P is maxed out in this channel, it suggests that Monday will bring a pullback for the S&P.  

Trade well my friends


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