S & P 500 rising in unconvincing fashion Dow Jones may soon undergo a pullback Advertisement
U.S. stock indices aren t looking particularly strong these days, grinding higher by a handful of basis points at a time. The S & P 500 continues to ride along a top-side trend-line that could also constitute the last leg of a reverse symmetrical triangle, also known to some as a Megaphone. These patterns are marked by higher highs and lower lows that indicate a growing instability in the trend.
The lack of momentum at this juncture with the pattern formation suggests we may soon see a decline get underway. The prior high at 3870 is the first level of support, followed by the important March trend-line.