Stock Market Highlights - Week 26
After retesting 18,200, the stochastic (STO) indicators bounced off STO 80 and it is now working off overbought territory. The STO indicates that there is still some selling off that could occur. We shouldn't be surprised to see a retest of 17,700 in the coming weeks.
The S&P 500 closed at 2101.49 on Friday, June 26th, 2015. The S&P was posed to break out of its ascending triangle pattern. However, it stopped short around 2,130. From then on beginning in June, it peeled back into a 60 point trading range from 2070 to 2130. This is nearly similar to that of the DJIA chart above.
Just like with the DJIA, it appears that on the SPX, the STO levels have not been completely exhausted and there is still more selling to occur. For the bulls, you'd like to see a break above 2,130. The more times it tries and fails to break through, the more likely it is that the bears will take control. However, right now it looks more or less neutral.