Watching for Short-term Trend Changes

September 28th, 2011
in contributors

by David Grandey, All About Trends

arrow-up-and-down1 Lets talk trends for a moment and concentrate on up-trends. What is the definition of an uptrend when viewing a chart? The answer is simply higher highs and higher lows.
When does an uptrend change? The answer here is also simple: When you go from higher highs to a first lower high, that is a possible change in trend.

Today we have three index charts (below) that illustrate a possible change in short-term uptrends. When an uptrend changes it does not necessarily reverse to a downtrend. In the three charts below we see examples of possible turning points.

Follow up:

In the first case ($COMPQ) we see the break to the downside of an uptrend (pink lines) with the prices now falling within a wider uptrend channel (teal lines). The red and blue lines show the major support and resistance levels that might in coming days (or longer) define a sideways channel.


The next chart shows a stronger suggestion of a sideways channel for $SPX. In this case there is nearby strong resistance from the red line trend and from the 50-day moving average.


The third chart shows a different variation on the possible trend change theme.  The Russell 2000 is now torn between the recent short-term uptrand and a longer term downtrend.


The next several trading days will go a long way toward defining if the trend changes show any follow-through. Next week the picture will be a lot clearer.

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Investing articles by David Grandey:

About the Author

David-GrandeyDavid Grandey is the founder and CEO of All About Trends, a subscription based newsletter service focused on helping individuals secure consistent profits in the market by trading what they see, not what they think, hear or fear. The focus is on how to trade uptrends, downtrends and changes in trends. All About Trends offers a free newsletter at and a free report -- "How To Outperform 90% Of Wall Street With Just $500 A Week.”

Disclaimer from All About Trends

THESE ARE NOT BUY RECOMMENDATIONS!Comments contained in the body of this report are technical opinions only. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. All About Trends reserves the right to refuse service to anyone at anytime for any reason. Allabouttrends.netis not an investment advisor, hence it does not endorse or recommend any securities or other investments. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities. All trademarks, service marks and trade namesappearing in this report are the property of their respective owners, and are likewise used for identification purposes only. The member/subscriber agrees that he/she alone bears complete responsibility for his/her own investment/trading decisions. Allabouttrends.netshall not be liable to anyone for any loss, injury or damage resulting from the use of any information. Trade at you're own risk, this information is strictly for educational and informational purposes only. assumes NO responsibility whatsoever for any losses experienced by anyone who uses its educational materials to make financial decisions. All charts courtesy of

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