Wednesday, 28 March 2012

ASX 200 breaks resistance around 4300

But it's not in the clear yet, as the following chart shows. It includes after hours trade and shows that the market is wrestling with a resistance zone that held 5 times in 2011. If that level is cleared there is more resistance just below 4400, and finally trend channel resistance just above 4500. Also bear in mind that the influential S&P 500 is testing multiple trend line resistance zones.

S&P 500 a wedge and two trend channels suggest a top is near

First chart shows an up to date view of the long term trend channel I posted this morning.


Next chart shows the wedge that has been forming since late 2011.


Final chart shows a trend channel formed from the October and November 2011 lows.

S&P 500 testing top of channel drawn from 2010 and 2011 extremes