Walk the Line

Whether you're a Johnny Cash fan or not, the market has been Walking the Line for the first 3 months of this year....and it actually does feel a lot like Prison!  We've updated our chart to include some new potential trend lines. As the image below suggests, the market is walking all over this major Blue downtrend line. When price action is above this line, it serves as support, and when price is below the line, it serves as resistance. Eventually this walk will end with price out on good behavior and breaking through the dotted Pink line and up to the green shaded area, or will misbehave thus increasing it's prison sentence. 
   
In summary, these areas discussed are what we're watching to determine the amount of risk we plan to accept for our portfolios.