The 10 month consolidation ends with a breakout into a new trading range — and (of course), that’s bullish. Traders should use the double red line as their stop loss — any break of that suggests a market sliding back into the prior range.

SPX Breakout within the larger uptrend channel 
click for larger chart

Chart courtesy of Redwood Technimentals

Note that the upper green line of the channel — 1310 or so — becomes the new target.

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Quote of the Day
"Your emotions are often a reverse indicator of what you should be doing."
-John F. Hindelong

Category: Markets

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3 Responses to “Chart of the Week: S&P 500 Breakout”

  1. blo5ish says:

    cool, man. now, all i want to know is when that chinese economy is gonna nosedive.

  2. dsquared says:

    Interesting thing is, that breakout coincides exactly with a nasty leg down on the US$ – I haven’t looked at the chart, but suspect that euro-denominated investors are still stuck in a range.

  3. 张家界 says:

    Very good Thank author this article is quite good!