This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Earlier this year we highlighted the possibility that the S&P 500, having been rangebound since mid-2014, was stuck in a box formation that was last seen in the 2006-2008 period, and ended in the Great Crash of 2008. That box has been broken, but not to the downside. Even when we talked about it, price action was showing remarkable resilience. Once again the S&P 500 has tempted in a barrage of short positions, before turning around and moving higher: