July 19, 2021, 9:06 am EDT
8-month Uptrend Channel Breakdown (SPY)
A major uptrend rally started after the US presidential election on 11/02/2020, is at great risk of breakdown. As shown in S&P500 (ETF: SPY) with a gap-down opening today, it will serve both terminations of an uptrend and the beginning of a downtrend. In fact, all major indexes are in trouble of a bear attack.
It is time to be extra cautious because the longest bull market with 12 years of age could come to an end if last week’s top cannot be reached in the near future.
Switching back to the defensive mode by reducing long positions may be the first thing to do. Technically, we will monitor if 50 day-moving-average can come to the rescue by providing a support or rebound level.