Saturday, July 14, 2012

Trend line collision imminent

A declining tops trend line (red) has defined a general decline in the S&P 500 since early April, while a rising channel pattern (blue and green lines) has been in place since late May. The peak on July 3rd (circled) confirmed both trends, but soon the S&P will have to violate at least one of the trends and thereby forecast either continued rallying or another downward leg.

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