ES1! SPY SPX - S&P500 Channel Test

2 set 2019

Since August 2019, the S&P 500 has entered into a "Channel" formation between 2823-2946, with trading being quite choppy ever since.

Despite the market's volatility throughout August, it appears that the S&P 500 is making strides in trying to exit this "Channel" pattern to the upside.

Two indicators to support the S&P500's move higher is:
1) The S&P 500's rising RSI momentum ("Higher Lows and Higher Highs") indicating investors are steadily moving back into the index; and,

2) The S&P 500 is still above its green trend line indicating that the upward momentum is still intact.

If these two trends hold, we could see prices making a move higher to 2980 - a Key Monthly Resistance Level (Blue)

4 set 2019

Nota

The SPX is still bouncing around within its "Channel" formation, with the price bouncing off its Weekly Support Level of 2892 (Orange).

This level will remain crucial for the SPX as it tries to break out of this "Channel".