Friday, December 11, 2009

The US stockmarket is in an interesting place...



As can be seen from above, the downtrend line from since before the beginning of the recession has technically been breached.

If the S&P 500 index remains above this line for a week or two(or longer), the case can be more strongly argued that the uptrend will continue.



On a shorter term basis, the Dow Industrials has a reverse head-&-shoulders pattern that points to a minimum target of 10500-10510, but could presage a grinding move higher towards 10 700- 11 000 towards the end of this year and perhaps the first weeks of 2010.

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