Quick view of the monthly - we can see a big megaphone pattern that has been developing here. Now this by no means is a sure topping pattern, but if you look at the technical indicators, they all seem to be pointing downward, and indicate that the market is running our of steam and is poised for a fall. Of course the timing is not certain - it can ride up that upper part of the megaphone for a while and being caught short during that time can be not so great.
But it's interesting to see that never has SPX shown such a pattern over such a length of time; indicates that the peaks and the valleys are great and the moves are volatile. Bulls would like to see SPX take a sideways consolidation somewhere along the line and make a meaningful move higher and break out and up out of this pattern. Bears would love to see the markets touch the bottom of this pattern, which can put it as low as 2100, the highs reached in middle of 2015 before correcting.
But it's interesting to see that never has SPX shown such a pattern over such a length of time; indicates that the peaks and the valleys are great and the moves are volatile. Bulls would like to see SPX take a sideways consolidation somewhere along the line and make a meaningful move higher and break out and up out of this pattern. Bears would love to see the markets touch the bottom of this pattern, which can put it as low as 2100, the highs reached in middle of 2015 before correcting.