The daily trend turned down two weeks ago, the weekly trend turned down last
week, while the monthly trend of the three main US indices (DJIA, NDX and
SPX) remains up.
In addition to the weekly trend turning down, the SPX dropped below the weekly
pivot line, and that pegs the next downside target at 1323. Resistance is
at 1396:
The pivot line closely mimicks the trendline drawn from the Dec. 28th daily
low. As long as the index remains below that line, bears have the upper hand:
The closest daily support level is at 1360, which coincides with the 23.6%
retracement of the November '11 - April '12 range:
George Krum is the author of the "CIT Dates" blog and several
books available on Amazon.
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