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.”
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