An uptrend line on a stock chart is an illustration that the bulls are in charge. As time passes, prices move higher.
If the stock price “breaks,” or trades through the uptrend line, it could be an earlier indication that the rally is about to end.
Since March, the SPDR S&P 500 ETF Trust (NYSE:SPY) has gotten very close to its uptrend line on numerous occasions. Each time it bounced back and the rally continued.
Now, the SPY is trading right at this crucial trendline again.
If it breaks, meaning that the price crosses the line, it could be a sign that the bulls are running out of steam. The bears may be about to take over.
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