Stock Market Major 5-year Trendline CrossedStock-Markets / Stock Markets 2016 Jan 07, 2016 - 06:08 PM GMT
It appears that SPX has violated its (nearly) 5-year trendline that appears to be in the mid 1950’s.
I normally would not be watching this since the more technically correct trendline was violated in August. However, there are multiple analysts who have been using this as a “line in the sand.”
It is now broken and may lead to a panic phase starting as early as today, but no later than Monday, as the word gets out.
SPX has helped me to identify the trendline crossing by bouncing off the line in the opening decline at 1954.47. It bounced, then dropped through to 1941.27 before retesting it at 1953.70. I have drawn it where it appears to be located in the hourly chart to show how it may have been positioned in today’s action. Minute Wave [iii] may have been completed at 1938.83. We should see a bounce at the close that may retest the trendline before resuming the decline to the larger Head & Shoulders neckline tomorrow, approximately another 80 points beneath the trendline.
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