Observations, analysis & insights about markets, sectors, stocks, geopolitical issues, etc.
Friday, May 31, 2013
Market Update: Key Short-term Inflection Point
For as many years (20+) as I've been studying charts, I'm always still amazed when I see price get to a moving average or trend line and pause or react to that level as if it was a hot wire, seemingly confirming that millions of investors are all keenly aware of the same thing.
I wrote yesterday how the market (S&P 500) was carving out a triangle pattern on the hourly chart. Viewing the updated chart above, one day later that triangle pattern is even more clearly defined, as yesterday the index got exactly to the upper portion of the triangle (1660) only to then roll over. The S&P 500 is currently holding at the lower portion of the triangle, fast approaching the triangle's apex.
In this shorter-term time frame, we are definitely at a key inflection point with the eventual breakout from the triangle formation likely dictating the market's future direction. Stay tuned!