The ASX/S&P 200 (XJO) had a clear and significant breakout on February 3 this year when it rose and closed above the high of 5679 that occurred on August 21, 2014 last year. The ASX/S&P 200 closed last week at 5881, some 202 points above that high.
ASX/S&P 200 Chart
The weekly chart below shows solid black trend lines at the same gradient as those that I used in an article in the Switzer Super Report on October 13, 2014. It also provides perspective on where the ASX/S&P 200 has come from since the beginning of the 2008 bear market and where it may go to from here.
Since that article, the ASX/S&P 200 has respected the lowest black trend line on three occasions, the first two of which formed a technical pattern called a ‘double bottom’ or a ‘W’ in December 2014.