Courtesy of Doug Short.
Advisor Perspectives welcomes guest contributions. The analysis and recommendations presented here do not necessarily represent those of Advisor Perspectives.
As we close out the year, a common tradition is to look back over the past 12 months for a sense of how the market is doing. Instead, let’s take a broader perspective and examine the big picture over the past few decades. The chart below illustrate that the Dow and S&P 500 continue to be influenced by key falling channels and resistance lines.
As we look towards the New Year and plan strategic asset allocation decisions, we would want these major resistance lines to be taken out to the upside before we consider overweighting towards equities.
All the best to everyone in 2012 and beyond.
(c) Kimble Charting Solutions
blog.kimblechartingsolutions.com
