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Chart of the Week: S&P 500 Breakout

Posted By Barry Ritholtz On December 2, 2004 @ 11:57 am In Markets | Comments Disabled

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

Spx_breakout_12_2004 [1]
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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Can Things Get Any Crazier? [7](pdf)

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Quote of the Day
"Your emotions are often a reverse indicator of what you should be doing."
-John F. Hindelong [8]


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/12/chart-of-the-week-sp-500-breakout/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/photos/uncategorized/spx_breakout_12_2004.jpg

[2] Year’s biggest shopping day leaves some retailers scratching heads : http://www.decaturdaily.com/decaturdaily/news/041202/sales.shtml

[3] Beyond the year-end rally: http://cbs.marketwatch.com/news/story.asp?guid=%7B3873731D%2DF235%2D49E2%2DA961%2D41A7564E8843%7D&siteid=mktw&dist=

[4] Economists Have Advice for Buyers as the Art Market Heats Up: http://www.nytimes.com/2004/12/01/arts/design/01pric.html?ex=1259643600&en=f8662762029fb3a0&ei=5090&partner=rssuserland

[5] Acacia Flying Underneath the Radar: http://www.streamingmedia.com/article.asp?id=8971&page=1&c=13

[6] What, if Anything, Will Sink the Global Economy?: http://knowledge.wharton.upenn.edu/article/1090.cfm

[7] Can Things Get Any Crazier? : http://www.capmarketsinfo.com/ViewFile.asp?ID1=20142&ID2=34807445&ssid=1&directory=6571&filename=Can_Things_get_crazier_12.2.2004.pdf

[8] John F. Hindelong: http://www.twst.com/notes/articles/has850.html

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