Not many traders pay attention to weekly charts, instead their focus is mainly on the daily charts. However, a quick glance from time-to-time at the weeklies, particularly on index charts, can show you things that the daily charts never will. On the weeklies below (for the NASDAQ and S&P), both indices are butting up against key resistance levels, that has for quite some time now, kept the markets from moving drastically higher.
The NASDAQ since the better part of July has stalled at the resistance level noted below, which comes in somewhere around the mid-2100’s. In this particular instance an exact number isn’t necessary. What is necessary, is knowing that at currently levels, the market’s attempts to stage a new leg up in the market has failed each time it has met this strategic price level and that it carries long-term significance, as this resistance level below has for a few years now has been a strategic battle-zone for the bulls and bears to duke it out in determining future market direction.
The S&P seems to also be sharing in the NASDAQ’s weakness, as it too is finding it difficult to move beyond the 1100 market which has been long-term support/resistance for the S&P. A move higher, would signify that the bulls are pushing the markets waaayyyy higher. Until then, it provides an enticing risk-reward scenario for shorting the S&P.
