Interesting patterns

Trendlines -- a useful tool. Just to help you keep the eye on the ball.

I showed you this chart a few days ago. The important trendlines are those spanning about 3 months.

The S&P 500 violated on the downside the trendline going from February to April. It signalled a change in momentum (click on the chart to enlarge it).

In July the S&P 500 rose above the trendline, signalling a possible change in trend. I discussed this pattern in an earlier post.

Now it looks like the market is on a rising trend. According to this simple rule, stocks should be in trouble if and when the S&P 500 falls below the green trendline.

It is just a conjecture of course. It is going to be interesting to see what happens.

Stay tuned. And for the latest timing signal, please read the recent issue of The Peter Dag Portfolio.

George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest

To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.

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