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.
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Quote of the Day
"Your emotions are often a reverse indicator of what you should be doing."
–John F. Hindelong
cool, man. now, all i want to know is when that chinese economy is gonna nosedive.
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.
Very good Thank author this article is quite good!