The State of the Trend
The SP500 finished week 6 of an expected 9 week sideways/up cycle right on the uptrend line drawn from the October 2011 low, and within a couple of points of channel support:
And while a lot of attention has been paid to the breakout from the daily and hourly triangle, we want to shift our focus to the weekly triangle, since a break outside of that will have more lasting repercussions for the trend in the long run:
From that perspective, the SP500 closed exactly on support, and there is another cluster of support levels at 1174. Interestingly, that's not far off weekly and daily channel support (courtesy of OddsTrader app) at 1170 and 1164.
While the SP500 continues to trade within the congestion zone we identified several weeks ago, we noted on Wednesday that a shift in bullish sentiment is taking hold:
Keeping in mind positive seasonality before Thanksgiving, however, the expectation is that the sideways trend will continue for at least another week.