The SPX has decisively broken through significant resistance at the 1420 area and has cleared
out a double top formation. The market is moderately overbought in both the short and intermediate
term and is well extended above the trading band which has dominated the rally since early Jun.
So, we may well have a mini - blowoff to a new cyclical high which calls for a little backslide
but which is still likely to test higher ground ahead. The indicators do not suggest anything very
threatening is imminent from a purely technical point of view. SPX Daily Chart
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!