|Brewing Triangle or Technical Breakout? |
Even as the S&P's long-term downtrend line is threatened, more recent compression in the trading range could augur a return to the prior trend
|Source: Natexis Bleichroeder|
Since the market peaked in early 2000, there has been a string of lower highs, so the S&P's chart certainly qualifies in that regard. However, the mid-March lows represented the first higher low for the index. Thus, by its purest definition, there is not yet a contracting triangle for the index.