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Technically Speaking: Broken Trendlines

The simple rule about MACD is that once it goes below its zero level, traders should go short. If you look at the S&P chart, going below zero is actually breaking a trendline. Now, broken trendlines are not always true to themselves. Traders almost always believe that if it breaks, it continues in that direction. But rather, we have to remember that timing tools like MACD and classic charting signal a possible move in a direction much like a switch that if turned on, it must immediately turn on. Otherwise, the switch is broken. As timing tools, timing is not always spot on. Or timing becomes delayed.
The breaking of trendline also means that a new formation is going to be formed, either a continuation pattern or a reversal pattern.
So far for the current S&P chart, no direction yet is being established that is why we have to be careful taking a position on either long or short side. Now how de we participate in this kind of market? Here are some options:
1) Take a vacation and wait for the pattern to fully form.
2) Keep your size very very small.
3) Aside from the MACD, use stochastics to see if your stock is oversold then participate in light volume. Be quick!