Monday, September 20, 2010

Stock market update: Breakout?

If intra-day lows and highs are considered, then the S&P 500 index has finally broken through the nearly-horizontal upper trend line that's been in place since May.

However, if we only look at closing prices, then the S&P 500 finished the day today smack dab on the rising upper trend line, signifying nothing.

Even if this turns out to be a breakout and a continuation of the rally that began in late August, it would only mean an even more over-priced and fundamentally shaky stock market in the long run. I don't plan to buy any stocks any time soon.

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