I try to keep my posts to one a week, but after running through a ton of charts tonight I had to do another post on what is the most important chart I am seeing right now. It is:

Screen Shot 2016-11-13 at 8.49.18 PM.png

If stocks can break out above this well defined resistance area, I would be very comfortable holding long positions in stocks as an asset class overall.

You can see exactly where we rolled over in 2007. That area has acted as resistance in 2013 and 2015. Continued consolidation and working away at this resistance is positive to me. The more times a level is tested, the higher the likelyhood that it breaks. If we can’t and roll over, I’d be concerned.

RSI is very close to hitting overbought, which will reinforce the continued bullish bias that has been in place since 2013 in this ratio.

I am watching this chart closely, not what CNBC is blabbing on about Trump will do to the markets.