Weekend Analysis by Amateur Investors By: Amateur Investors | April 7, 2018
From a historical perspective the S&P, in terms of "real dollars", is still way above the top of its longer term upward channel (red line). In fact it would take a 15% drop, from current levels, to get back to the top of the channel which is around the 2200 level.
Meanwhile, as I have alluded to before, each time the S&P, in terms of "real dollars", has risen above the top of its upward channel significant corrections have eventually followed (points A to B). So the question is will history be rewritten or will the past be repeated?
As far as the near term, for the past two weeks, the S&P 500 has been hovering near its 200 Day Moving Average (green line) and tested it again on Friday.
Meanwhile, if the S&P 500 drops below its 200 Day MA and previous low at 2533, the next level of support would be in the 2466 to 2438 range. 2466 is the 38.2% Retrace from the recent peak while 2438 is along the 400 Day MA (blue line).
Market Data 
Markets 
AI
