S&P 500 Rangebound after Breaking Uptrend

The stock market was on a 45 degree plus angle for essentially the last 2 years. At some point it needed to come to an end. That point was 2022.

Since the start of the year the benchmark index has been lower and it started early as the S&P's uptrend was cracked in mid-January.

The Bull and Bear Battle is on....

Looking at the daily chart above you can see the yellow uptrend line that was broken and then tested as confirmation of the breakdown.

Following that we have seen price action sideways between 4600 and 4150, with both levels putting in double tops and bottoms, respectively.

So the real question is which way will it break. Currently it is testing the support again and just bounced with today's rally. Follow through will obviously be needed.

However, the headwinds seem to be picking up with interest rates rising and the FED set to raise again next week.

Stock have been on a rather epic run for more than a decade now (save for the covid dip).

In the end, if companies continue to report good earnings with good forecasts then things can push higher. There has been many reports so far that showed good results, but tempered forecasts for the coming year.

Stocks haven't reacted well to that. Only time will tell.

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