by David Grandey, All About Trends
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. 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.
David 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 www.allabouttrends.net 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. Allabouttrends.net assumes NO responsibility whatsoever for any losses experienced by anyone who uses its educational materials to make financial decisions. All charts courtesy of stockcharts.com.|
Want to know more? Visit our web site. Have you enjoyed good results from our newsletter or have a comment or question? Contact us at [email protected]. We’d love to hear from you. If you enjoy these newsletters, tell a friend! — you can help us out by voting for it each day. At the bottom of our list is a place to vote for us. Voting for us each day helps our list get closer to the top which means more visibility and more subscribers and more opportunity for us to help others like you be successful.