Did This Trend-line Stop The Market?

Did the trend-line below stop the market from going up a few days ago? Yes. No. Maybe. Everybody will have their own reason as to why a market stopped going down or up at a certain point of time. The point of this post isn’t to determine what stopped it, but to recognize the importance of Technical Analysis.

The market ran into a trend-line  Could it have broken out from there? Sure. But it didn’t. That’s why if I was swing trading, I would likely not initiate longs on the 6th positive day of a run up as we ran into a trend-line. The risk-reward did not favor me.

$SPY - SPDR S&P 500 ETF

 

 

Tags: $SPY $SPX $STUDY

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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