So is there normally a Christmas-New Years rally?

Posted in the comments section.

http://www.zerohedge.com/contributed/santa-takes-sp-positive-ytd

 

you forgot Festivus !

 

Are you saying price normally obeys lines?

If yes, why are "news" lines then not obeyed? Did price not make those prices?

 

For the rest of us!

Tonight will be the Airing of Grievances. Tomorrow, the Feats of Strength.

 

I'm saying price obeys whatever people are paying attention to. They aren't going to all the sudden pay attention to trend lines after what has been going on lately.

 

Since August prices have been paying attention to lines more than ever!



The line that we are at now (that was drawn in the chart) represents european debt.
The first two bounces were when this crisis started. The third bounce was on the Greek bailout.

So as long as the european crisis exists, we should not break the trend line.

 

You mean the down trend line in the first page of the thread?
Looks like by the close of this Friday, it has already been broken.

 

Yes.
Not really, Im drawing it on SPX not SPY which is more accurate.

 

If your assumption were correct, then spx would begin to go down right after the open of next week.

 

Not necessarily, there could be a wick poking through the resistance.
However if my assumption is correct, Tuesday will close down.