Thursday, October 16, 2014

Trendline needs to hold

We're right on it this morning after testing and bouncing yesterday to close unched for the year.

Managing risk, I went back to the 2009 lows and connected the dots.

The new trend line coincides perfectly with the October, 2007 peak.

Not a prediction, and this move could take some time, but if the selling intensifies, I'd rather be prepared.

Also, bear markets are defined by a 20% move off the highs.

2000 * .8 = 1600...which is right on the new trend line.

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