SPX broke a major resistance level this week, on monthly chart: 5/08 high of 1440.24. That peak doesn't look too prominent in the scheme of things, the move down was huge, 1576.09 to 666.79. Since 1997 onwards, we've moved into the monthly ATR of 100pts, So breaking up to the peak of May 08 doesn't seem too far fetched, (we've moved 76pts this month) and we've had QE and a major resistance has been broken. While I would have been happy to have SPX turn lower into the lower price channel support from here. The market must turn lower this week or it would confirm my upward target however incredulous it may seem. Given my RSI peak post few days ago I'll stay neutral and watch how this week plays out.
SPX broke a major resistance level this week, on monthly chart: 5/08 high of 1440.24. That peak doesn't look too prominent in the scheme of things, the move down was huge, 1576.09 to 666.79. Since 1997 onwards, we've moved into the monthly ATR of 100pts, So breaking up to the peak of May 08 doesn't seem too far fetched, (we've moved 76pts this month) and we've had QE and a major resistance has been broken. While I would have been happy to have SPX turn lower into the lower price channel support from here. The market must turn lower this week or it would confirm my upward target however incredulous it may seem. Given my RSI peak post few days ago I'll stay neutral and watch how this week plays out.