Please take a look at a daily chart of SPZ09…There are three key points which, together, provide a nice long-term bull trend line…First is Mar 06/09 low at 6775. Second is Jul 13/09 at 8615 and Third is Oct 2/09 at 1012… Connect these three and it projects to a trend line intersection today at the 1080 level which should be good resistance, then again at 1096..
Corresponding Points in the DJZ (Dow futures) are the following… Mar 02/09 low at 6808…July 13 low at 7970 and the Oct 2 low at 9334… Currently we are above that trend line as of last Friday’s settle…Its a long enough trend-line, however, that one should definitely be looking at it as a fulcrum…
Big trend lines such as though, again, are self-fulfilling areas where we should get a lot of volume as both bears and bulls place their bets as to where the market will trade from the intersection with that trend line…
My personal opinion, is that the market is trending higher, so we should continue to climb the wall of worry higher…
Good Trading..