Long-Term Chart of $SPX

I couldn't sleep this morning, so I got up to do a little longer-term analysis of the S&P 500. The analysis that follows uses multiple timeframes beginning with the Daily, Weekly, and Monthly charts. It is possible to see how each piece of the puzzle fits together.

First, the daily shows that yesterday we had a completion of the Right Shoulder of a Head-and-Shoulders formation. Now, if the formation is valid a breakdown from the current levels is expected. The measured move would take us down to 800, which is also an area of prior support/resistance from earlier this year.

Daily


Second, looking at the weekly chart we can see that the measured move from the daily chart coincides with the 50%ish Retracement of this years move. If this area holds as support, it could start to form a Right Shoulder of an Inverse Head-and-Shoulders formation as the Left Shoulder formed late last year.

Weekly


Lastly, the monthly chart shows that we have reached the retracement zone of the swing high from last year to the low from this year. It also depicts the amount of support that could be present if we retest the 800 level.

Monthly


I have been listening to CNBC and people keep saying that we could retest the lows and possibly go through. That looks about right if I only look at the $SPX chart from 2006 to now, but a look back to 1997 could tell a different story. However, multiple timeframes are aligning, so we will have to see what happens when/if the daily formation completes.