S&P 500 Channel Consolidation

By | July 20, 2015

The S&P 500 index remains in a channel consolidation. The range compression can be seen on the Bollinger Bandwidth indicator at the bottom of the chart. Volume is about average but positive money flow has dropped off, and the MacD is in slight bearish divergence. These are all fairly normal technical indications during a consolidation phase, but remember the direction of a potential breakout, while expected to be in the direction of the long term trend, has not been determined and will require confirmation on this timeframe.

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