Is a reversal coming in the S&P 500?

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The S&P 500 has been on one historic ride. I have personally said that a reversal was coming on two occasions now and I was wrong on both of those occasions. What makes this time any different? The prior two opinions needed confirmation. The market made a new 52-week high and happened to form a doji candle. After that doji formed, the market closed below that candle. This time, I saw the confirmation. The market then continued to close lower and approached its 20-day moving average and closed below it as well. While all this was happening, the major trend line also happened to be violated. When you combine this with the VIX starting to turn and the MACD showing seller control, this makes a much stronger case for a trend reversal.

Dwayne Tucker is an individual investor in Akron, OH. He began is journey in 2006. After numerous investment mistakes, he followed a simple method to make consistent gains. He credits his achievements to hard work, self discipline and his hunger for education. From his experiences, he helps other beginning investors clear the difficult hurdle by teaching his simple technique. Dwayne helps run www.wincrease.com , which is dedicated to helping beginning individual investors.



This article was originally published on MarketIntelligeneCenter.com



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , stocks

Referenced Stocks: SPY

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