SPX at crossroads. Again.

thumb_3.18.10_index_spx_m_--_new_s__p_500_indexIs there a trader, pundit, talking head, even perma-bear that does not regard SPX 1200/1228 as a fait accomplit before Q2 ends? To some of us battle scared traders, that either means we don't see it when planned, or we shoot right past it. But believe it or not, there is an almost equally important level, and we are already there: SPX 1172, or close. Zooming out to the monthly chart, slap a fib on the previous bull, dial in 50% and you get 1172 (many of us remember the fierce battles there). It was the final hurrah in January 2002, the headfake in 2004 with final breakout in May 2005, retested in October of the same year, resistance in October 2008 and now? Nine days left for this monthly candle.

Published on 3./18/10 in the Live Monitor and on 3/19/10 at Minyanville.com