S&P 500 Breaks Out of Downtrend

At the end of November, the S&P 500 broke briefly above its downtrend line only to sell off significantly the following day (last Monday).  After recovering nicely since last Monday's big decline, however, the S&P 500 has managed to hold well above its prior downtrend line, which is definitely a win for the bulls.  While there are now numerous resistance levels to get through as the market tries to climb higher, at least it's forming a new uptrend and not a downtrend.

 

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Comments

[Tom Chechatka]

There's only one major resistance level we need concern ourselves with. It is at the bottom of the range in which indexes traded during the week in mid-September when Lehman Brothers failed. Those who went long that week surely are hopping to get out even...