Even though the S&P 500 index appears to be relentlessly pursuing new all-time highs, the traditional seasonal weakness in October leads me to be very focused on risk management right about now. After my latest conversation with fellow StockCharts contributor Joe Rabil, in which I got to hear his thoughts on risk management, I wanted to share some reflections on what risk management could mean for investors as we get into the meat of the 4th quarter. Watch the S&P 500’s “Line in the Sand” My general approach to technical analysis is to determine the current trend, then identify what level or signal would convince me that the trend had reversed. I call this the “line in the sand” technique, because you literally draw a line on the chart, and then don’t give the chart a second thought until and unless that line is violated. For the S&P 500, that means…
