Thursday, 3 January 2013

ASX 200 and S&P 500 wrestling trend lines, two sides to a coin

ASX 200 first. There are two sides to a coin, and two sides to a trend line. If the market can sustain a move above the top trend channel line, it will signal an acceleration of the bull run that began in June. A turn down is the other option, of course.

Now the S&P 500 daily. Seems inconceivable now that it won't at least test the 2012 high, but stranger things have happened. Same comments apply, two sides to a coin etc.

Zooming out to the weekly for the S&P, it's still wrestling with the trend line drawn from the 2011 and 2012 lows, and perhaps closing in for another test of the line drawn from the 2011 and early 2012 highs.