Point & Figure Example
June 16th 2006 S & P 500 cash index 10 x 3
The following chart shows the long term upward trend with the recent correction which may of seemed conciderable but looking at point and figure puts this into context. The trend is still intact but the violation, as indicated, does cast a cloud over future continuation.
Although this chart includes daily high/low data and the "close" chart clearly shows the trend still in place, this chart could be an early warning signal for a retest of the trend line with a possible break.
