Here's a current S&P 500 technical analysis video that takes a look at two technical indicators colliding in the chart of the S&P 500. While the market was clearly downtrending throughout 2008, it is undeniably in an uptrend from March of this year until present. However, if you draw a trendline connecting the sequential lower highs from late 2007 until now, you'll find that the market is approaching a resistance level as determined by this downtrending resistance line. You can watch the video here to see this illustrated.
Additionally, if you setup a fibonacci retracement tool from the last highs of October 2007 to the lows in March of this year, you'll see something very interesting. The 50% retracement ends up at S&P 1,122 and could very well also serve as resistance. So, you essentially have areas overhead to worry about. And, we're dangerously close to those areas already. Again, here's the S&P 500 video. And if you're unfamiliar with fibonacci retracements, watch this educational video.
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