If This Gives Way, The Bear Market Will Gain Momentum

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If This Gives Way, The Bear Market Will Gain Momentum

New York Stock Exchange Index

One of the broadest stock-market indices in the states is starting off the year with a key test, which could send a very important message for months to come.

This chart takes a look at the New York Stock Exchange index over the past 20 years. Since its 2011 lows, the index has spent the majority of the past 8 years inside of rising channel (1).

The decline over the past 90 days has the index testing the bottom of the rising channel and 2014 highs at (2). This price point becomes a very important support test for this broad index.

As a reminder, support is support until broken. If this dual support price-point does not hold, it would suggest that the bears will be busy at the start off 2019.

Keep a close eye on this price point as what this broad index does could send a very important message at the start off the new year.

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