Press "Enter" to skip to content

Price dancing on support, so far, so good

oct-18-2016-support-holding-so-far

Here we are one week after the post alerting you to how price was approaching a major trendline.  The white box in the graphic above indicate trading which has occurred on October 11th-18th dancing above and below the red trendline which connects the February and June lows in the stock market.  Price pierced the trendline last Thursday as indicated by the arrow, but managed to climb above it for the close as noted by the right facing hash on the red bar (a good sign).  As you can see, price closed below the trendline on Monday, October 17th just two days later only to reverse back to close above the all important trendline today.  Watch this carefully for clues as to how the market is going to trade going into the end of the month when we’ll calculate the Market Alert Line to determine our status in the market.  Currently, the Market Alert status is on BUY and is at SPY 208.