Friday, December 2, 2011

Chart of the Day

I mentioned in my opening post on the main page that the market had reached important resistance. Here is the chart:




Hopefully you can see that purple trend line drawn in that I had been watching since early October as support for the SPX. Well on 11/17 you can see that the SPX broke decisively below that trendline, and the market had a correction.


Now, the market has rallied all the way back to the underside of that trendline. That seems like a logical place for the market to take a breather, and I have trimmed more of our trading positions today.



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