S&P 500 Trend Line Analysis 01 29 10

Simple trend lines are one of the many useful tools that help us determine possible future direction of the market. While nobody knows the future, value is gained by knowing what the market is doing at the moment. Moreover, looking back at how the market behaved historically from time to time can also be of value. The breaking of trend lines in the past can give us a clue as to where the market may go next. This is just one more bit of information that when added to other bits of evidence begin to build a case for bullishness or bearishness.

Look at today's chart and see what conclusions you might come to.

(Click on chart to enlarge it for easier viewing)

I won't know if this dip should be bought or sold until I accumlate more evidence. So for the moment I will do nothing.

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