Technical Talk: Respect the S&P’s uptrend
The comments below were provided by Kevin Lane of Fusion IQ.
As seen in the chart below the S&P 500 hit the lower end of an up channel yesterday [Thursday] (lower green line and arrow) and subsequently rallied well off the lows to close back within the channel. As long as prices stay above this area (1,186 on the S&P 500) the uptrend and long positioning need to be respected.
Overhead the S&P 500 is stalling in the 1,213 to 1,210 area. For the market to leg up towards is next upside target of 1,300 the index needs to clear out these levels.
So in a nutshell, if the S&P 500 moves below 1,186 the near term trend turns bearish. However, a move above 1,213 will extend the current bullish move. [PduP: The Index closed the week at 1,217.]
Source: Kevin Lane, Fusion IQ, April 23, 2010.
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