As the chart below reveals, the S&P500 has been suffering in a downtrend all year. Friday’ action finally broke the index above that trendline. Similar charts of the Dow and Nasdaq, however, do not show a breakout (yet).

SPX Chart (one year)
click for larger chart

Spx_break_out_1_year_100404
Source: IQ Quotes

Whether that breakout sticks will likely be determined by a few economic releases this week, most notably Friday’s Employment Situation report.

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Category: Finance

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