Thursday, April 18, 2013

The S&P 500 is testing a major pivot

The market was down yet again today and slightly undercut the major support area at 1540, however closed back above it to close right on the 50 day MA.  This is major support, now the question is does the SPX bounce to form a lower high or RS of a H&S top (see the purple lines) if so that would be a fantastic low risk short into a Sell In May and ago away event, or does it simply lose support here?  We'll see. 

The second chart also shows a point and figure chart, which demonstrates how important this 1540 area is.

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