Main Resistance

I thought we might be coming up against a more localized resistance area, it seems the opposite is true.

 This is the daily 300 exponential moving average in white. Note that the area in 2008 in yellow is the exact area I used as a reference point as far as mass market emotion/psychology goes as the two areas share all the same major components, you may recall this post, I'll have to dig it up, but so far, the major components have played out almost exactly like 2008, it should be noted we saw about a 50% decline from there.

 Here's the same average today, it was broken to the upside just like 2008 and is now acting as resistance today.

 The simple 200 day moving average, which is a good proxy for determining primary trends by the slant of the average could be said to be slanting down at this point. Furthermore the same area is late August that was shut down by the 300 ema (see chart above) is also the same area providing resistance today (the price peak about the 3rd week of August at the red trendline).

 Here is an intraday chart carrying that very same trendline with a low volume bounce up to resistance and a increased volume decline after a failed test.

This is my proprietary Trend Channel, it is unlike Envelope channels, Bollinger Band or any other type of channel. It widens and narrows automatically as it adjusts to each equity's own recent volatility. It has proven to be very valuable in defining stop out areas for trending markets. A close below the lowest point of the lower channel (for a long) is a stop out, you can see we are very close to that point. I've used this channel with extraordinary success to hold on to major trending gains rather then making an arbitrary decision as to when and where to stop out. If you have Telechart or StockFinder, I'm happy to share it with you.