Below is the channel that the S&P 500 has been for over 7 years. The Bottom Long Term Trend Line has not broken and has held 3 times. (2009, 2011, 2016). There is absolutely no reason ANYONE should be long term Bearish unless we are below this LONGTERM TRENDLINE. Now that I got that out of the Way. Let’s Zoom In.
This is why I am an immediate term Bear . With the zoomed in version of the weekly chart above and making it a daily chart, one can see this Accelerated channel we are inside. The top of this channel has found resistance in the past and the bottom of this channel has found support as you can see below. I rolled my 401k back into stocks after being in bonds all year long on Nov 3rd at the close on the channel bottom and it is there to stay for a while. However, this IS NOT a good buying opportunity for individual investors at these levels. You would be a CHASER, someone who chases high and sells low. That is not who we are.
The first place I would like to step in and buy is around 218-220 SPY knowing that it is possible that we test the channel low around 216.