What can be said about the chart is that we tried to move out of resistance zone and made a break-out in the S&P 500 in the early summer and that we have tried to stay above it for the past four months, but that we are now back in the zone that we have been for the most of the past 20 months. One thing that is interesting with technical analysis is the speed which failed moves like this can have. Therefore it would not surprise us if we came down abruptly from here.
We will then have a look at the ETF GCC which tracks the continuous commodity index. This is what a weekly chart looks like:
What we see here may be the beginning of a bottoming pattern. The has managed to get over the 50-week moving average which is flattening out. This is a good sign if you want higher commodity prices in the future.
The post False break-out in the S&P appeared first on LJ Nissen's blog.