S&P 500 – Descending triangle in a making

S&P500 is forming Descending triangle which by definition is a bearish formation. I am not sure whether this one can produce sell off from these levels. My opinion is that technical picture is rather messy here and developed markets now follow Emerging markets (asian ones).  Bonds sell off can explain some recent strength of equities.

Anyway the world now is full of disbalances which are main drivers of trends (medium term trends of S&P is still bullish as shown on graph below) . My advice is to stick to trends and don’t try to overthink the markets.



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: