The sharp rally in the equity markets this past week pushes the S&P 500 back into a zone that should present problems. I've included below, three important factors you should be considering in this market:

Strike one is that we've already reached a 50% Fibonacci retracement from the high seen at 1116.59 and the low of 1022.40. This area indicates increasing resistance on the upside for the S&P 500

The second strike against the S&P 500 is the downward trend line from the mid-April high that intersects the market around the 1080 level. This technical force should also act as a resistance level.

The third strike is our monthly "Trade Triangle" which remains in a negative position. The monthly "Trade Triangle" is also confirmed by the weekly "Trade Triangle" which remains in a negative position. The -75 score indicates that the downtrend, while not as strong as before, remains intact.

Based on these three strikes, we expect the market to move first into a trading range and then to resume its downward path.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub

The current rally in the S&P 500 is bringing this market back to key levels of previous support. Normally when you see rallies back to a previous support level, that support level then acts as resistance.

In our earlier videos, we discussed the death cross as well as some of the other key indicators that continue to remain negative on this market. Today, however, I pinpoint exactly where we think this market is going to run into trouble and where you should perhaps look to go short.

You are free to watch this video with no obligation and no need to register, but I would really like to get your feedback on this video as well as this market.

All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub