S&P 500 Trend Update (Week 7)

The S&P 500 is heading higher within a narrow uptrend channel and almost reaching the 2011 highs. We can observe how buyers could create a new visible base at approximately 133.50 which should not be penetrated for the current uptrend to remain intact. Intermediate term traders might want to adjust their stop accordingly. The crucial low is still seen at 130.

As long as this trough has not been breached, there is insufficient evidence for a larger pullback. Meanwhile it is sensible to stay bullish. Trend followers know that resistance areas are likely to break if a market is in a bullish theme according to the Dow Theory.