Trend lines on S&P500

by Malcolm Pryor on 06/11/2012
Trend lines for many traders are key to analysing an instrument's price action. There are 2 interesting trend lines on the weekly chart of the S&P500 index. A trend line drawn upwards and extended from the June and the July lows has been broken, a sign the bullish forces have been unable to maintain the momentum implied by that trend line. However, a longer term trend line drawn upwards and extended from the October 2011 and June 2012 lows is still in tact, keeping that longer timescale (for now) bullish. To break that longer term trend line price would need to close below 1390 (yesterdays close was 1417 so the break would require a 2% fall).


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