Thursday, December 20, 2012

Closing trend lines

The multi-year rising support line for the S&P 500 index now stands at around 1350.  Meanwhile the S&P has closed to within 20 points of a resistance line around 1460.

Since these trend lines are converging, eventually the market will either have to rise above the upper limit, or fall below the lower one, signaling either a continuation or the end of the current rally.

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