Market Milestones: Crossing the Channel
One of the more concerning signals comes from the 3-day chart, which shows SPY trading within a massive parallel channel since 2020. Recently, we gapped above the channel, then gapped back inside, leaving behind what resembles an island reversal near the highs after one of the strongest runs in history. That alone is enough to warrant caution. We’ve also seen bearish RSI divergence since September—a sign that momentum is waning, even if a top isn’t imminent.











