Courtesy of Doug Short.
Here’s the latest weekend update from Serge Perreault, a Chartered Accountant and market technician located near Montreal, Canada. Serge has been following the U.S. market in a series of weekly charts. Here is his update on the S&P 500.
The S&P 500 broke its uptrend support, on 2.6% below-average volume and on now mixed momentum. Its “right-angled broadening top” formation reflects consolidation (like in a sideways-trading range) but, also, instability in the market which, in the worst case scenario, could lead to a breakdown of its support.
Note: For newcomers to technical analysis, here are brief explanations for the two key indicators that Serge features:
