Chart Talk {10.18.18}

I promised to update the chart I posted on 10.09.2018.  Here it is.  Stocks are right now digesting that monster move higher from a couple of days ago.  So far that lower horizontal green line is resistance. The thing to note is that something here is going to break in the next few weeks.  Either we're going to break through resistance or the 200 day moving average {blue line in the middle of the chart} and then that trendline {pink line} dating back to November 2016 is going to be violated.  We are becoming over sold in multiple timeframes by our work but haven't yet reached a level that normally generates a longer term buy signal yet.

Back early next week.

Chart is from Tradingview.com although the annotations are mine.   

*Long ETFs related to the S&P 500 in client and personal accounts.

PS.  If  I had to guess {and it is only a guess} I'd think the higher probability in the coming weeks would be for the next move in the index to be resolved higher into the end of the year and maybe early into next year.  However that trendline and the moving average will keep moving higher and that has the potential to be a problem on a money flow basis for markets in 2019.