Another view of the big-picture down-trendline resistance in equities features Russell 2000: Chart of the Day

There are many methods we and others use for analyzing markets, including trendlines. Andre Gratian, of course, uses them on big and near-term charts. We also apply trendlines to indicators themselves - one of the tools used by Terry Laundry, for example. Then of course there are horizontal lines used to define range-bound markets - as Phil Davis has pointed out, to which he also brings his fundamental outlook (see his article today for example, Options Trader Friday Outlook: Deja Vu All Over Again? -- Seeking Alpha. So it's interesting to see the folks at http://www.chartoftheday.com) share a look at their big-picture down-trendline in the Russell 2000:

Chart of the Day - The Russell 2000 downtrend
December 11, 2009
For some perspective on the current state of the stock market, today's chart presents the long-term trend of the Russell 2000 (small-cap stocks). As the chart illustrates, from late 2002 into 2007 the Russell 2000 traded within the confines of an upward sloping trend channel. However, since mid-2007, the trend has been down. Fears of an outright collapse of the financial sector resulted in support (green dashed line) of an already fairly steep downtrend to be breached. As it became apparent that the financial sector would survive, stock prices rose with the Russell 2000 moving back into its original downtrend channel. Currently, the Russell 2000 is testing resistance (red dashed line) of its two-year downtrend channel for the second time since the financial crisis.
Notes:
- The market is at a critical juncture. Where we go from here may surprise you. Find out right now with the highly regarded charts of Chart of the Day Plus.

Quote of the Day
"I can't change the direction of the wind, but I can adjust my sails to always reach my destination." - Jimmy Dean

Chart of the Day is provided to subscribers without warranty of any kind and accepts no responsibility for its accuracy or for any consequences of its use. Journalists and bloggers may post the above free Chart of the Day on their website as long as the chart is unedited and full credit is given with a live link to Chart of the Day at http://www.chartoftheday.com.