2018-08-17 15:36:21 | On The Fly: Weekly technical notes for S&P 500The S&P 500 (SPX) had a series of incredible swings this week that saw deep price plunges and even-larger pop-backs in price. On a weekly basis this has had the effect of creating a bullish, inverted, head and shoulder pattern that has just ticked into active status at time of writing. The upside potential for this pattern would put the index close to the 2900 area, if it remains active and completes. It would take a drop in price on a sustained basis below the 2820 area to void the pattern. That we could have turned from what looked like a threat of intermediate-term support to this bullish scenario is all the more remarkable given the mixed sector picture and a distinct change in leadership against prior runs. Leading this week on the upside were the more defensive sectors, Consumer Staples (XLP). Utilities (XLU), Real Estate (XLRE), and Health Care (XLV). Energy (XLE), Materials (XLB), Consumer Discretionary (XLY), Technology (XLK), and the Financials (XLF) were the weak sectors in descending order. |
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