S&P Falling towards support?
As has been the case for a couple of years now, the economic world appears to be hurdling towards an abyss of debt. I don’t doubt we’ll land there at some point. But for now, there appears to be some technical support around 1330 in the S&P, where a couple of trendlines converge with the 50 day MA.
Speculatively, it appears that the S&P may be forming a rising wedge that would end in early August around trendline resistance that runs from the 2007 top through the earlier 2012 top. Previous similar trendlines (2007-2010, 2007-2011) proved to be powerless against the rising tide (of Fed intervention?). With Twist scheduled to run through year-end, it’ll be interesting to see if that trendline resistance matters. Or, on the other hand, if we can even get back there to find out.