S&Ps Reach For Upper End of Trend Channel

With a positive start to the week, it looks as though the S&P500 is attempting to retest the upper end of this longer-term trend channel. These parallel lines in $SPY take us back to the Fall 2011 lows where sentiment was some of the worst I've ever seen. Here is what I see now:

On another positive note, I would say that the fact that S&Ps could not get down to the lower end of this range on any of the recent corrections is a good thing. To me it shows strength in the overall trend. And think about it, we've essentially gone nowhere since May. So yes, we have seen corrections, especially within individual names and sectors.

The upper trendline is a moving target, so to give an exact number is hard to do. As of this morning, straight up takes us to around 176 on $SPY. I'm still in the camp that playing around with S&Ps here is probably less advantageous than being in individual strong names (if you're looking to be long). A wise man once told me that, if you trade the averages, you get average returns. That may not always be true, but today I believe it is. At least in the short-term.

I'll follow up on this S&P500 chart later this week. It should be a volatile one.

Tags: $SPY $SPX $ES_F