Stocks Approach Trend Shift Point

WATCHING STOCKS APPROACH TREND SHIFT POINT

Continued declines have pushed stocks close to a trend shift point as shown on the chart below:

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Chart courtesy of Finviz.com. This chart is for educational purposes only and is not an advisory to buy or sell anything.

As October is historically a month of both declines and beginnings of bull markets I’d expect one of these two price lines to be a bottom.

The bull market that has been the stock market for the last year makes me choose the lowest price line (1640)as the one most likely to hold the bull market trend intact. If prices break below 1800 in the S&P 500,  prices will have little to hold them back from 1640. – George

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  • October 16, 2014