1) ~940 was the January 6th high (943.85) .
2) It coincides with 200 EMA (945.86) .
3) It coincides with the upper side the May-Sep 2008 channel (Please see the chart, green line).
4) It coincides with upper side the current uptrend.
Considering all these points the ~940 is the most important resistance in coming days. The next resistance will be 960 (the lower side the Oct,07 -Sep,08 channel) please see the chart, I pointed in blue.
Note that we could not close above the Jan 6th high, S&P500 moved above it for a couple minutes but it failed to stay above it. Plus as I expected 200 EMA acted as resistance, as I said many times before close above 200 EMA for 3 days or more would be very positive, and increases the chance of continuation of the rally. A couple months ago if someone would tell me that we are going to hit 940 by June I would laugh, but anything is possible these days. I can't believe in my eyes anymore. Big institutions push the market up and have caused several shortsqueeze rallies. I don't see how could investores jump in market after +41% rally!
Posts
