The S&P 500 index bounced off its June low at 1990 this year then rallied 100 points over the next two months to the 2190 level. After a month long attempt to break 2190 resistance it pulled back in a declining channel pattern to the 200 day moving average, and then rallied sharply this month again, breaking above the channel downtrend line and re-entering the 2190 area zone of resistance.
This latest move has no doubt expended a lot of energy and may require another period of sideways consolidation in the resistance zone, but one particularly positive technical sign is the reading on the Chaikin money flow indicator. It has crossed back above its declining 21 period signal average and its center line, reflecting renewed buying interest.
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