Securities Research Services

Wednesday, September 24, 2008

10-Year Trend

The SPY is resting right near its 10-year trendline. Technically it's not in good shape and a trendline isn't necessarily a reason to buy. Nevertheless, it's important not to have too much short exposure here. With a government bailout looming and with the trendline still in tact there is potential for an upside surprise.

Keeping a mostly cash position is recommended until we get through this difficult week.

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