Short term, the market is edging further into uptrend mode. It is at a critical juncture now. The
SPX is trading around 2.3% above the 25 day m/a. This is about where the bears have hit it in
recent weeks. As you'll see on the chart in a moment, there is overhead resistance in the 1200 -
1225 area, so the market will need to trade through this to gain credibility. Should the market
be on firmer footing, it can easily trade up to the 1245 area from today's close of 1209, and do
so in relatively short order.
The chart also marks the next logical resistance point up at the 1260 pivot line. But first will
come the test in the current strong resistance zone. Support remains down at 1120 - 1125.
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!