Exposing Ideas to the Envelope of Serendipity

Contact moo at: bluechipbulldog@gmail.com

Monday, October 4, 2010

Critical Crossroads

I wanted to share an updated chart of the $SPX since its inception to again show the significance of this very long-term, very critical trendline, and where this leading index now sits in relation to its influence. Add to the picture the more recent descending trendline off the 2007 highs, and it's not difficult to see why overhead resistance has been so strong of late and why the battle between bulls and bears wages on. A decisive move above the intersection of these trendlines would have the potential to kick-off a major new bull run. Near-term, however, headwinds are strong and stocks may need some consolidation. A volatile first half of October could be in the cards.

Trade well.

-- Brinkley
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