S&P 500 - Forming a Bullish Flag or Pennant but not clear. Top?

The S&P 500 appears to be moving very horizontal at the moment, possibly forming a bullish flag or pennant. However, the pattern is a little too horizontal to be clear, so its also possible this is a short term top of the market, possibly for end of the year profit taking and covering tax liabilities.

A look back in the last 10 years of chart history does not show another example of the S&P 500 moving this clearly horizontal. The pattern has clear lower highs but the support line is razor sharp almost as if its artificial.

Trade with caution.

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The S&P500 is currently wicking down and hovering below the support line a 6020. We will see if its a fake break of support and stop hunting or the real start of a move down.

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The S&P500 seems to have found support at the 6000 level. Keeping an eye on it..

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The S&p500 has broken the 6000 level and seems to be on a price discovery hunt looking for support. My guess is the 5920 level or maybe 5850.

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The wick down has closed the session at 5872, just 22 points short of 5850. I should have had a trade open on that. =)

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200 Point drop in a single day. I cannot find anything in recent years that matches that kind of downward move. COVID dropped 1000 points over 23 days. With massive drops like this, we could cover that ground in just a week.

Something is going on .... trade carefully.

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The S&P 500 has formed a dead cat bounce on the support line of 5867. I expect a gap down on market open tomorrow, or more downside to this move.

swineninety9

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