We have been closely monitoring the price action on a weekly chart for this major index and have noticed a topping bearish pattern known as a Head & Shoulder Top may be in the making. It appears that the neckline may have been violated to the downside; as well as some trend-line support.
It is important to keep an eye on how this develops in the weeks ahead.
A look at the monthly chart, shows the inability to stay above the 2000 highs so far; while the MACD momentum indicator has not crossed to give a sell signal, the RSI indicator has been diverging (falling while price climbing) since the beginning of 2014 and this is usually bearish.
We appreciate you and hope this helps to see whats going on in the longer term picture.
Be careful out there!
This was originally shared on Captain John's Charts
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