Yesterdayâs 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.
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.