Is This Time Different?

While doing my daily chart review, I noticed an interesting change within the S&P 500 taking place.

SPX chart from John Rothe

The S&P 500 is clearly still in a downtrend as marked by the red, downward trend line.

But notice the MACD; in the past, the MACD had already formed a buy signal — well before the index “touched” the downward trend line.

This time around, we have a newly formed MACD buy signal as the S&P 500 approaches the trendline.

Is having a not-so-aged MACD buy signal a telling sign that investors are thinking the market will break above the trend? Only time will tell.

For now, it’s just one interesting observation of many.


John Rothe

John Rothe is the Founder and Chief Investment Officer of Riverbend Investment Management

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John Rothe

John Rothe, CMT is Charted Market Technician and the Founder and Chief Investment Officer at Riverbend Investment Management, a firm he started in 2006 after spending a decade on Wall Street. John Rothe is the portfolio manager for Riverbend's actively managed investment strategies.