“Buy these 50 stocks and that’s all you need”. That was the early 1970’s as the stock market bounced back from a deep correction to make new highs (point 1 on the chart below).

Those 50 stocks were dubbed the “Nifty 50“.  And investing in them felt like a fool-proof plan at the time.

Well, today’s stock market is beginning to feel a bit like that. And, in the case of the S&P 500 (INDEXSP:.INX), price is facing a similar line of resistance (point 2). In both instances, long-term channel resistance is being tested (see the chart below).

It was 50 stocks back then, just add a “0” today and make it the nifty 500?

S&P 500 Long-Term “Weekly” Chart

 

A clear decisive price move above resistance would be very bullish. But it’s worth noting that several key stock market indices are facing similar long-term resistance… and each has shown weakness at first blush. Worth keeping an eye on in my humble opinion!

 

Thanks for reading and good luck out there!

ALSO READ:  Russell 2000 “Doji Star” Formation Concerning

 

Twitter:  @KimbleCharting

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

Not Investment Advice – Please read investment disclaimer.