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The State of the Trend

Today we'll revisit two charts we first published last February.

The monthly SPX chart below allows for easy comparison between the last three SPX rallies. Gann angles do a very good job of showing the rate of ascend and acceleration in the second half of the '94 - '00 and current rally. We just added two trendlines in blue. The one on the right side shows that a drop below 1800 - 1790 will represent a violation of the current monthly trend line:

S&P500 Monthly Chart
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The daily SPX chart below shows the last six corrections since '13. Here the 1800-1790 is the level of the lower channel line which has provided support on several occasions so far:

S&P500 Daily Chart
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In summary, 1800 - 1790 are the key technical levels to watch for next week as a drop below them will signal a break in the daily, weekly and monthly SPX trend.

The equivalent level for the DJIA is around 15,600:

Dow Jones Monthly Chart
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Gold and silver have dropped below key support/resistance levels and have traded in a very narrow range for the last three weeks. The 50% retracement level remains our bullish/bearish fulcrum for GLD:

SPDR Gold Trust Shares Weekly Chart
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