Trend lines can at times highlight important times in the market. It never ceases to amaze me how trend lines can hold a market, and how sometimes they "appear" to have a magnetic attraction; ie prices bouncing of the trend line. The points where markets break the trend line are also important to identify.

Note the recent break of the trend by the SPI (proxy for the All Ords). This recent break tends to suggest the market will spend May and June below this line. Handy to know if you are looking to buy stocks at better prices.

The current trend line (I call it a 'live' line, since it is currently in operation) is downwards. Watch for a retest of this line in early June, as the market attempts to retrace upwards, the current move down.

Note the head and shoulders formation April 1998, and again in April 1999. This years SPI chart pattern has been amazingly similar to last years run, so far. It pays to study past action.