SPX Weekly Chart Long Term Upward Channel Failure

Important to keep things in perspective as the markets rally strong for three days. The long term upward channels (blue channel and red channel) were broken in the August crash. The back kiss occurred late August-early September, resulting in failure, and price collapse. At 1165 now, another 35 handles are needed just to get up to 1200-ish which would only be the lower rail of the blue channel. In other words, the market bulls have a long road to hoe to crank the party up again, and, despite this short-covering rally, overall, the broad market weakness should continue for the weeks and months ahead.

Keep an eye on the 200 week MA, now at 1142, this is key support now. The 200 week MA started playing an important S/R role in April 2010, 18 months ago. Projection is for the 200 week MA to eventually give way, price to move sideways to sideways down for the weeks and months ahead. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.