Fact: Over the last 15 months, the channel in the chart above is driving SP500.
In high energy, there has been a few excesses above the top line (maximum 17days and maximum 1.6% above the line)
Given the lower energy prevailing on SP500, i think the top line is not likely to be breached significantly
Big picture:
- This channel will be broken (sure thing) and this break is much more likely to be to the downside at some point.
- The channel climbs 0.8% per month.
- The time is counted, I would say the rally can last 5more weeks before a decent correction.
