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Wilshire 5000 Attempting Rare Breakout

Published 03/29/2016, 12:29 AM
Updated 07/09/2023, 06:31 AM

Some think certain things are hard to accomplish due to age. And with regard to age and accomplishments, the chart below of the Wilshire 5000 came to mind.

Wilshire 5000 Weekly 1995-2016

This very broad index remains inside of 5-year rising channel (A), as the 5-year trend remains up (higher lows and higher highs). Over the past year, the Wilshire 5000 has made a series of lower highs and lower lows, inside of falling channel (B), as the 1-year trend remains down (lower highs and lower lows).

The rally over the past 6-weeks, now has the Wilshire 5000 testing 1-year falling resistance at (1) above. This is a big test, as the trend does remain down. For the 6-week rally to have a chance of continuing, this index needs to take out resistance.

To change the 1-year trend, the Wilshire 5000 needs to “accomplish a breakout.” If it does, it would send a positive message to stocks in the States and potentially beyond.

Keep a close eye on the broad index friends. What it does here, could become a big deal to both bulls and bears.

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