The new daily chart shows a lower trading range of SPX 1825 (support) and 2000 (pivot / resistance)
SPX Daily. The SPX 2000 level was chosen as the top of the range to capture the gateway to higher
prices. The market is moderately overbought on short term momentum against the 25 day m/a and
RSI is also getting elevated following the break of its downtrend. Should the market strengthen
further in the short run, traders will be watching the 2000 level with extra care.
Stocks have been rising following news of evidence the economy has been firming up rather than
discounting the news in advance. Despite the fast run up in the SPX recently, players are still wary
of the environment and have needed encouragement from the fundamentals. As suspected, the
start of a seasonal rise in the oil price is also helping out the market, reflecting good news for
profits net, net.
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