The S&P500 has been stuck in a broad trading range since late 2003. A close over 1130 would mean that this range has been broken. That sets up a leg upwards into the new trading range.

SPX at the top of its recent Range
click for larger chart
Spx_91304_annotated
chart courtesy TC2000

The lower end of the range is 1050 or so; A failure at the 1130 level sets up the following possibilities: a retest of the recent lows; a partial retracement; a fresh attempt at breaking that resistance. We will keep you informed as soon as we have a strong conviction about which is the most likely outcome . . .

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Quote of the Day:
“Decisions determine destiny.”
-George Patton, General U.S. Army (November 11, 1885 – December 21, 1945)

Category: Finance

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