SPX update 09/29/2014: just the trendline ma’am.

The trend(line) is your friend and today, at 1964, the SPX hit the long term trendline that has held all downside in check since the December 2012 low. Let’s see if it can create a meaningful bounce from here?! Market breadth indicators are today positively diverging (not shown), meaning that at today’s lower low, breadth was better than at Thursday’s 1966 low. Hence, downside momentum is waning and turning into upside momentum. There are now IMHO only 2 options left: off to the races for a 2100 target, or a weak bounce to 1995/2005 before new lower lows. Time will tell. For now, the trendline is holding.

SPX update 09292014

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One thought on “SPX update 09/29/2014: just the trendline ma’am.

  1. Pingback: NYSE update: broken below long term trendline | Intelligent Investing

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