Are we at an Inflection Point?
By Edward Miller, CFA®, CMT®
Since the June 17 low, the S&P 500 has rallied an impressive +17%. The big question is: a bear market rally OR the start of a new bull market?? Good question! The chart below shows that the S&P 500 is fast approaching a key inflection point area:
It appears two key trend lines are converging right about where the S&P 500 resides currently. If the index successfully breaks through these trend lines to the upside AND is able to hold that upper-area and not recede (head-fake), that would argue for the bull case, and that perhaps “the bottom” is in. But if the index struggles here and rolls over, that suggest this impressive move off the lows is likely a bear market rally and we could see the index retest prior lows.
We should know one way or the other over the next several days -- stay tuned!
Edward Miller, CFA®, CMT®
Chief Investment Officer
Measured Wealth Private Client Group
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