Bausch Health Companies Inc (BHC)

[JLS]

Gone Exponential,

From December of 2016 through most of 2017 $SPX was trending higher along a narrow inclining channel -- it doesn’t get much better than that -- then it started trending at a higher rate during December of 2017 then at an even higher rate during January of 2018. That increase of rate is referred to as going exponential. Large indices that cover all major sectors (and are therefore well diversified) can’t usually get away with that without paying a price. That price has been getting paid during the last several days, and now $SPX is back to trading where it should be (or maybe a wee bit too high).

Now the market is in an earnings reporting season, so some sectors will rise faster than normal while others will go flat or drop, therefore $SPX could slowly continue to climb higher without going exponential. How much longer can it do that? I don’t have a clue.

I wouldn't be surprised to see a little resistance to going higher at S&P 2,690 (the wee bit mentioned above). It traded flat there for almost two weeks at the end of December. There is a horizontal spike at that level shown on the SR chart.