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All-Star Charts: “Pay Attention!”

One of the things that surprised me most about leaving the wirehouse world (aka The Galactic Empire) was realizing how vibrant the advisor community was outside of the walled gardens of Wall Street. There are some really fantastic professionals walking among us.

A couple of years ago, through Josh Brown, I met JC Parets — a truly talented & experienced Market Technician.

Today, JC succinctly summarized something in the S&P 500 chart that everyone should probably be paying attention to…

This is it folks. Sometimes we can complicate things and other times we can try and keep it simple. Today let’s just stick with the two obvious trendlines that everyone seems to be talking about. The first is declining off the April highs and has been tested 3 times. The second trendline serving as support comes up from the June lows and has also been tested 3 times:

The resolution to this pattern is coming quickly as we approach the apex of the triangle. Confirmation will come on a breakout above 1375 to the upside or a breakdown below 1335 to the downside.

JC also thinks Small Caps rally, which is going head-to-head with Doug Kass, who tweeted today about going “ALL-In” shorting the Small Caps. So, young buck vs. one of the masters… This is gonna be fun.

Read the rest of JC’s take on the charts…

The S&P500 Trendlines Everyone Is Talking About

 

 

Disclosure: Long US Large Caps & Small Caps