Consolidation Zone? Is the S&P 500 Looking for Answers, Along with Seahawk Fans

The above chart is for the SPY ETF, it tracks the S&P 500. The market swings since the beginning of December are leaving people scratching their heads, much like Seattle Seahawk fans. "What is going on, which way is this thing going?"

Well, the daily chart does not give much of a clue, the market is in a narrowing consolidation zone, a break-out either side of the channel will provide some guidance. But.....

...the weekly chart looks darn good. The longer term trend is intact, periods of consolidation tend to be continuation patterns, meaning that if the trend was up before it is likely to go up again. So, if the daily chart breaks to the upside, look for fair weather ahead, if it breaks down again past 195, be concerned about a longer term down trend developing.

Like the Seahawks, there has been a recent storm, but if they come out strong again next year I like their chances to be back in the big game. Can't be perfect all the time, at least that is what my wife keeps trying to  tell me ; ) Go Hawks Go!