Jan
During the very light trading of this last week of 2010, price has come up to the top of this resistance range and backed off a bit. With so many traders away for the week, I don’t put much credence in this pause.
Look at how far above the new S1 this uptrend is riding. There was a bit of a pullback in mid December, which is so far above the new S1 that this confirms that this uptrend is a strongly accelerated one, so one may fit a TopFinder to this trend. I’ve done that, shown in purple, fit to the Dec. 16th pullback. The projected cumulative volume for this uptrend is 11.6 million shares, and at this point the uptrend has consumed 8.94 million, or 77%. The projected horizontal location of the end of this accelerated uptrend is at the dashed vertical purple line.
My expectation is that in the new year this uptrend will continue to the projected end, most likely coming at a price somewhat above the top of this resistance range. However, in the unlikely event that price doesn’t break above the upper resistance at 1266.4, and if it breaks below the new S2 launched from the Dec. 16th pullback, then this uptrend is over.
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One Response to “S&P 500 Short Term – Still holding at resistance”
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This month: 50 at 05-19-2012 11:19 am UTC
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.My concern is that this weak pattern could be indicating that the Fear Index may soon fall back below its 21-month moving average…….If this happens it will be the first time that the Fear Index has given a whip-saw a buy signal followed shortly by a sell signal. All of the previous four buys signals were multi-year which can be seen from this chart. .