Some talk about the double-top that is forming in the S&P of late, and I thought I’d give you my thoughts. There is no doubt that the S&P is having trouble with breaking new highs. But for the Double-top to confirm, it needs to break 1249 – a good 60 points away still. But let’s say it does, then traditional technical analysis says it has about an additional 80-90 points of downside to it. If that is the case then a logical target would be the lows of the November pullback that we saw last year.
Here’s the S&P chart analysis.
