As spring wears on, the market tends to slow, and this process is evident in 2017. While the major indices have all been making new all-time highs recently, the pace of appreciation has diminished from that of the November-March period.
The S&P 500 has settled into a tighter upward sloping range of late (black channel), while also interacting with the lower end of the aforementioned November-March trend (green channel). The index looks set to follow this recent path for the foreseeable future, with support in the 1370 region, clearly visible on the 30 minute and hourly charts.
While we can safely expect some periods of turbulence and consolidation during the summer doldrums, the market’s longer term up-trend shows all signs of remaining intact, despite numerous potential geopolitical and economic risks. However, if looking for entry points for new capital, there is ample reason to wait and take advantage of entry points on the lower end of the recent rising range when they present themselves.