Major Averages Battle Key Trendline

Last time that I mention these triangles from last month, I promise. But I think it's important to bring up the fact that the upper trendlines from those patterns have been coming into play over the last couple of trading sessions. After the Triangles broke down (and not up like we hoped), they each fulfilled their measured moves to the downside (Size of the base subtracted from breakdown level). Last week's rally stalled on Friday at these extended upper trendlines.

Check it out:

Watch this battle throughout the week. Today's open is a huge positive, but these 200 day moving averages are also coming into play. The S&P500 and the Dow Jones Transportation Average are trying to break back above it for the first time since early August. The popular Dow Jones Industrial Average managed to break above it's 200 day last Wednesday and is trying to hang on today.

Tags: $INDU $DIA $SPX $SPY $TRAN $IYT