S&P 500 Trend Analysis - 3/17/2013

It was an up week for the major markets. For the week, the Dow Jones Industrial Average gained 117.04 points or 0.81%. The Standard & Poor's 500 Index gained 9.52 points or 0.61%, while the NASDAQ Composite gained 4.70 points or 0.14%.

The Standard & Poor's 500 Index has reached the highest level since October 2007. All three major indices and more than 35% of S&P members made a new 52-Week High. The major indices and more than a half of S&P 500 members are strongly overbought in daily, weekly, and monthly time frames. S&P 500 index has daily and weekly MACD bearish divergence. Read More ...

The S&P 500 index long term uptrend had started on March 6th 2009 at 666.79 and reached 1563.62 on Friday, March 15th, 2013, making 134.5% gain in four years. The chart is forming a channel pattern with the current price piercing the channel resistance level

S&P 500 long-term trend

The weekly trend had started November 16, 2012 at 1343.35 and gained 16.4% in four months. The chart has formed a five waves channel stricture; the fifth wave is near the resistance level.

S&P 500 weekly trend

Technical indicators and chart analysis suggest the current uptrend may reverse soon.