Sunday, July 13, 2014

S&P 500 Ascending

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Last week's price action demonstrated how quickly momentum stocks can lose favor with traders.  However, one or two days of selling does not a trend make.  Stepping back and looking at the larger picture the S&P 500 is set up in another ascending base pattern.

The ascending base pattern seems to be the "norm" in 2014 as this is the third time it has appeared in the S&P 500 this year.  The current pattern is not complete until this index stages a breakout above the 1985 level or the index breaks down below the 1952 level.