SPX Weekly Chart Long Term Upward Sloping Channel Failure

The fight for the channel's bottom rail for the last five months has been decided--with price collapse. Price below the 20 week MA below the 50 week MA is very bearish. The 200 week MA at 1137 will try to provide support. The importance of support holding in the 1125 area is obvious; if that area fails in the days and weeks ahead, a move lower to the 1040-1060 support area would be in order.

The long 2 1/2 year run for the upward-sloping channel, however, is over. The QE1 and QE2 parties from March 2009 to present resulted in a peak SPX index price in April 2011. The punch bowl is dry and the hangover continues. 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 decison.