The sp500 long term up trend line revisited

The long term up trend line from March 2009 may come into play if we are to see the most bearish scenario start to play out.  At this time I am still looking for more bearish confirmation and observing the nature of the tape before I can say with any degree of confidence that we would touch the 2009 up trendline again.

If the more bearish and fast down scenario does start to play out then I expect the 2009 trend line to become an important possible pivot point for the market that bounces it up before a possible eventual break through it down a bit later after the bounce.

It would be significant if we touch this 2009 up trend line for a third time because usually on the 3rd touch a market or stock becomes successful in getting a break through.  And it is also significant in the sense that the 3rd attempt to break the 2007 bear market line recently FAILED.

spuptrendline

So a 3rd attempt failure at breaking the topside bear market line could potentially mean a 3rd attempt SUCCESS at breaking the 2009 up trend line.

Very interesting dynamics setting up here into end of October 2010.

Posted in Long Term Charts
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