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

Spx_breakout_12_2004
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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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!

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