The S&P 500 Soundly in a Descending Channel

U.S. equities rebounded off the yearly lows over the past month, but also came up toward the resistance line of a clear descending channel that formed many months ago.

Markets are lower today and price action looks comfy in this channel, with plenty of room on the downside if the current trend stays in play

Channel Down...

As the saying goes, play the trend until it breaks. With that said, I'd have to lean bearish in the near-term.

Obviously all it takes is a push in the S&P 500 above 4,075 to bust out of the channel, but that remains to be see. Also, I think that 4,150 area could act as some resistance again.

Will we see a Santa Claus rally to end the year and move markets higher? We shall see over the next few weeks as December is just a couple days away.

Posted Using LeoFinance ^Beta