I charted the S&P 500 ($SPX) after the markets closed on Friday, August 14, 2009 when the SPX closed at 1,004.09.
This chart has a lot going on and it all points to more uncertainty. Stay tuned though, it’s interesting and should offer a solid clue of direction within the next few days. I drew four trend lines, A through D.
- Line A – shows the line of resistance the SPX hit again recently at the trend line of higher highs. This line is going to be hard to cross.
- Line B – shows a different trajectory (not as steep and easier to cross) where another line of higher highs turned into support.
- Line C – shows the horizontal line that was resistance on a few occasions could be support if the SPX gets back down to it.
- Line D – shows the line of higher lows which looks far away now, but could be back in place sooner than some think.