SPX Monthly: The Grim Reminder

We've been talking about a double top on the SPX Monthly Chart for over a year now, and at the time it was just an observation that we were rising but there was some longer term resistance in the 1550 area.

Fast forward a year and it's playing out the way many of these price patterns magically do. Now the question for us all is, "how far will it fall."

Notice on the chart that so far the September monthly bar has broken the upward trendline that has been intact since the bottom in 1991. Keep your eye on that monthly candle at months end and draw you own conclusions. (remember as we saw in today's SPX daily chart that trend breaks can be significant)

SPX Monthly Chart: Double Top Pattern (bearish) Playing Out