Monthly Close Tests The Bull

Discussion in 'Technical Analysis' started by Landis82, Jan 31, 2007.

  1. Yesterday’s action rallied through resistance levels testing the upward targets. The close at 1428.82 level fell short of signaling a retest of 1440 highs rendered last week. A close above the 1432.80 would be necessary to signal such an event.

    Today is the close for the Month and should a close above the 1426.40 level be rendered then that will keep the long-term bullish bias in the market. It would take a close below the 1418.30 level today to signal a negative bias for February.

    The 40 Day MA looms large near term ( currently coming thru at 1419.99 ).

    Should that level break, the early January lows of 1407.12 will most likely be taken out and a full-fledged "correction" of this rally phase for the Bull will be confirmed.
  2. See SPX chart.
  3. Look for a rally initially to the 1445.50 / 1449.65 area.

    Over the next 3-6 weeks, we should see the SPX target the 1485.35 level.