Tested the pre-2000 tech bubble, 14 year-old trendline in last 2 weeks

[caption id="attachment_489" align="aligncenter" width="500" caption="20 year SPX"][20 year SPX][][/caption]

I decided to look at the 20-year monthly chart once again. After all said and done in this crazy October, look where we are now. Right back to where we were, before the credit crunch, the housing bubble, the iraq invasion, 9/11, the tech bubble, and the 1998 bear. Just look at the trend line extrapolated from 1994 drawn above. Isn't it amazing!

On Saturday, I questioned our direction for next week and noted its significance. Looking at this chart, if we go down next week, then this will very much be a new leg of a downtrend because of its significance. We haven't broken this trendline in ... 14 years! If we do break this supporting line, then I wouldn't be surprised if we go all the way down to 650 on the S&P, the 1995 congestion zone.

As of this writing on Sunday night, the morning Asian market looks directionless at the open, Nikkei +0.4%, Hang Seng -1.6%.

I will review this chart again this weekend when it's end of the month.

[20 year SPX]: http://traderpau.files.wordpress.com/2008/10/2008-10-26-spx.png