To truly get a good perspective of what’s going on in a market, no matter if it’s equities, commodities, bonds, or forex, it’s important to view things in multiple times frames. I did this when looking at the important support level in gold ($GC_F) last week of the long-term trend line and I want to take a look at the long-term chart of the S&P 500 today ($SPX) going back to 1983.
The trend line starts from the 1983 bottom and goes up providing support in 1988, 1990 and after the tech bust hit a low in 2003. With the bull market off the 2009 low we are quickly approaching the trend line but this time as resistance.
Here’s a zoomed in version of the chart above so you can better see the approach to the possible resistance.
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