Where trendlines cross...

[Mark Lytle]

Do you see this long term trendline, sloping downward, and magenta colored in this next chart?

Now do you see the upward curving trendline in this next chart that provides current resistance? These shorter range exponential trendlines were generated by the 10/2007-3/2009 decline....

These two trendlines are crossing. This is what it looks like with this morning's high and low price data from the $SPX:

[BullBearGirl]

Interesting times!

[Mark Lytle]

You could be right about that...Most countries, as they go into default, their currency drops, but since we are the reserve currency, and we are facing a big hit on equities, that may make the dollar continue stronger, as you've said. We're seeing combinations of things happen that have never happened before...

[BullBearGirl]

Interesting read from Mike Shedlock. Thanks for that as I've never heard of him before. I've added his site to my favorites. It's interesting, but I have been suspecting the dollar would continue to go up even as bonds and the stock market go down. The reason for this is a few weeks ago, bonds and the market went sharply down together intra-day and the dollar went sharply up. I thought maybe this was a precursor to what would happen when bonds and the market really do go down. I think gold can only begin its next leg up when people start to say "See - nothing can ruin the dollar and gold is truly nothing but a useless relic." Just some thoughts and I sure could be wrong.

[Mark Lytle]

http://globaleconomicanalysis.blogspot.com/2010/03/treasury-yields-...

[Mark Lytle]

My guess, it is more than a correction, but we'll have to see how it develops....I think sovergn debt concerns are just starting to show up on the radar here in the U.S.

Check out Mike Shedlock's column of couple of days ago...he's very widely read and respected..

[BullBearGirl]

When you say trend change, that sounds like more than a correction - am I correct?

[BullBearGirl]

Thanks Mark - valuable information.

[Mark Lytle]

Hi BullBeargirl,

Crossing trendlines, both the ones I do, and more conventional ones, usually mean, trend change.

We were going up, now we should be going down...see Steven's warning from yesterday...it agrees...

So whenever anyone talks about trendlines crossing each other, that generally means trend change....always of course, wait for confirmation...

[BullBearGirl]

Hi Mark. Could you please tell us what meaning we can derive from these charts?

Thanks
BBG