SPY testing long term support
I have not commented much in recent months, but I thought I might provide an updated look at how I see the S&P chart. It has been forming a rising wedge over the last 5 years and appears to be near the end of the line. This most recent breakdown is threatening the line of support. Support has been broken before – both dramatically for short periods, and slightly for longer periods – so it will take a few weeks to get a better sense for what this break means. Margin remains near all-time highs. Sentiment has come off bullish extremes though, as has been the case since 2008. Anyway, enough blather. Here is how I see the 5 year chart of SPY.