Wednesday, 2 October 2013

S&P 500 daily chart - rallies through short term trend line resistance

The S&P 500 continues to form a bearish wedge. The classic way for a bearish wedge / ending diagonal to complete is with a spectacular but relatively brief rally through the top trend line. The S&P has broken short term trend line resistance and may be beginning a rally toward the top trend line.

The chart of the NASDAQ 100 provides additional reason to pay attention to that S&P trend line break... usually I'd be wary of putting much store in a break of such a short term trend line, but the NASDAQ has lead US stocks higher in recent times, and has broken higher from the almost one year old trend channel illustrated below. Beginning to accelerate higher, maybe a blow off top?

Gold daily chart - after plunge through trend line, nearing key support