A Sign to respect???

Posted by Chris Kimble on 07/06/2011 at 9:52 am; This entry is filed under S&P 500.

Certain signs often times demand respect.   Should we respect the sign/situation below?

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"Kissing the underside of resistance" and whats its future impact could be on the S&P 500, is one sign/situation I respect a great deal.  Until this resistance is taken out, from a portfolio construction angle, this situation does not suggest that portfolios should have a large exposure to equities at this time.

Should the kiss of resistance fail and an upside breakout takes place, that would be a very good sign for the broad market and a time to increase risk exposure!

 

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2 Comments

  1. dsan July 10th, 2011 at 6:24 am

    HI,

    I’m trying to get your same pltting on the S&S500 Index, but it doesn’t look the same!

    Any idea why?

    Regards,

    Diego

  2. Chris Kimble July 11th, 2011 at 2:39 pm

    Diego….the difference could be…if you are using a high/low/close or a close only chart. Could be daily vs.-weekly…log vs.-linear. Several possibilities come into play.