Wednesday, January 11, 2006

Pushing at the Top of Resistance

A picture's worth a thousand words - so I offer you TWO thousand words today. The charts speak for themselves. Here is the S&P MidCap 400:

.....and the Russell 2000......

Notice in particular the progressive breakouts in the Russell 2000, and how each one is shorter-lived and weaker than the prior one. These breakouts are indicated by the horizontal lines you see drawn four times on the graph.

1 comment:

Anonymous said...

Hi Tim,

Why did you choose to make the S&P Midcap 400 chart have a narrowing channle instead of a constant width channel? That is, why are your lines not parallel? Is there some volume-related reason or is it something else?