A Simple Yet Meaningful Chart

I posted the following tweet yesterday and was surprised at the amount of attention which it received:

 

SPX_Tweet

I can’t recall the last time I received 26 retweets and 42 likes on a tweet. However, when I say “highly significant” there is a good reason. Considering that the S&P 500 has been mired within a roughly 15% range for the last 2 1/2 years, last week’s breakout above previous resistance near 2130 simply cannot be ignored.

The contrast of the above long term chart breakout laid against the backdrop of BREXIT, weak economic growth, plunging bond yields, Turkish coup attempts, etc. etc. is really quite remarkable. If you ever needed more evidence of how meaningless pundits’ opinions are, or another reminder of how important it is for market participants to eliminate noise and focus on price action the above chart and the events of the last few weeks will be indelibly imprinted in my memory.

 

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