Top Advisors Corner

Where Do We Go from Here?

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Hello fellow StockCharts users. We seem to be finally gaining some steam here in the markets, but where do we go from here? I thought I would give you a few interesting charts that I'm watching on the S&P 500. I would also like to stress that these charts should be taken as potential areas of resistance and support, not exact targets. No one can possibly know how high we can go - or how low we can go. What we can do, however, is use these charts alongside our risk management tools to help us.

The first chart is the weekly chart of the $SPX. We can see that we hammered off exactly the area we broke out of back in 2016. This is interesting because most breakouts tend to retest at some point. The first area of resistance to watch is around 2532.

Now let's zoom in further to the daily chart of the $SPX, where I have changed the 40-week moving average to the 10-week moving average. As we can see, the 10-day moving average has acted as resistance on the way down and now we finally seem to be breaking out above it.

Finally let's take a look at a 2-month chart of the $SPX, where we can observe a breakout of this falling wedge pattern. We can see the breakout above the top trendline of the wedge and a continuation of the move higher.

These are the time frames that seem interesting to me on the $SPX. If you have any interesting charts that you're watching, please don't hesitate to share with via email at abozic@valuetrend.ca.


- Aleksandar Bozic

Technical Analyst, ValueTrend Wealth Management

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Email Aleksandar Bozic at abozic@valuetrend.ca

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If you are interested in learning more about Breakouts and how ValueTrend incorporates them into their investment process, you can watch this recording of the webinar we recently did here.

Disclaimer: Aleksandar Bozic is a Technical Analysis Associate at ValueTrend Wealth Management. He can be contacted at abozic@valuetrend.ca. He may hold positions in the securities mentioned. The information provided is general in nature and does not represent investment advice. It is subject to change without notice and is based on the perspectives and opinions of the writer only. It may also contain projections or other "forward-looking statements." There is significant risk that forward-looking statements will not prove to be accurate and actual results, performance or achievements could differ materially from any future results, performance or achievements that may be expressed or implied by such forward-looking statements and you will not unduly rely on such forward-looking statements. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please consult an appropriate professional regarding your particular circumstances. Full Disclosure here.

Aleksandar Bozic
About the author: is a Technical Analyst Associate at ValueTrend Wealth Management. He previously founded the Ryerson Society of Technical Analysts and became the first student ambassador for the CMT Association. He now serves as Chapter Assistant for the Toronto wing of the CMT Association. In addition to numerous guest appearances on StockCharts TV, Aleks has appeared on Yahoo! Finance TV and has been invited to speak about his investment and charting methodologies to multiple chapters of the CSTA. Learn More
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