Today the NYSE tagged the trend line in place since the price low made in October 2011 (Primary II): see chart. The last time this happened was during the October correction last year. Prior to that the trend line was tagged in June 2012. That’s it. So yes, this trendline is very important for the bulls. Price needs to hold it or at least a retest of the price high made in 2007: ~10400 is in order for starters. Given how oversold the market is (more about that in tomorrow’s update), it appears however the bears are running out of steam.
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