Chart of the Week: S&P 500 Breakout

The 10 month consolidation ends with a breakout into a new trading range — and (of course), that’s bullish. Traders should use the double red line as their stop loss — any break of that suggests a market sliding back into the prior range.

SPX Breakout within the larger uptrend channel 
click for larger chart

Chart courtesy of Redwood Technimentals

Note that the upper green line of the channel — 1310 or so — becomes the new target.

Random Items
Year’s biggest shopping day leaves some retailers scratching heads
Beyond the year-end rally
Economists Have Advice for Buyers as the Art Market Heats Up
Acacia Flying Underneath the Radar
What, if Anything, Will Sink the Global Economy?
Can Things Get Any Crazier? (pdf)

Quote of the Day
"Your emotions are often a reverse indicator of what you should be doing."
John F. Hindelong

What's been said:

Discussions found on the web:
  1. blo5ish commented on Dec 2

    cool, man. now, all i want to know is when that chinese economy is gonna nosedive.

  2. dsquared commented on Dec 3

    Interesting thing is, that breakout coincides exactly with a nasty leg down on the US$ – I haven’t looked at the chart, but suspect that euro-denominated investors are still stuck in a range.

  3. 张家界 commented on Jun 19

    Very good Thank author this article is quite good!

Posted Under