As I mentioned in my previous post (Click here) 1228 acted as strong resistance. S&P500 got close to it and we get the pull back that I was looking for. Big institutions could send the market lower to trap bears and manufacture a new shortsqueeze. What you need to pay attention to would be 1168-1163 support levels. It is critical for bulls to push the S&P500 above 1196. If S&P gets above 1196 it could move higher. If big institutions fail to do so, there is a good chance S&P500 tanks to 1131.
The last line of defence is 1075 if S&P500 tanks below 1075 it would be impossible for bulls to send the market higher in coming weeks. Due to huge rally a 5-10% pull back is absolutely normal, but you need to get worry if S&P500 breaks the lower side the up trend channel(see the chart in gray color). This channel started back in March 6th 2009. If S&P500 violates it; picture would get very ugly.
Resistances:
R1: 1194-1196
R2: 1220
R3: 1228
Supports:
S1: 1168-1163
S2: 1150
S3: 1131
The last line of defence is 1075 if S&P500 tanks below 1075 it would be impossible for bulls to send the market higher in coming weeks. Due to huge rally a 5-10% pull back is absolutely normal, but you need to get worry if S&P500 breaks the lower side the up trend channel(see the chart in gray color). This channel started back in March 6th 2009. If S&P500 violates it; picture would get very ugly.
Resistances:
R1: 1194-1196
R2: 1220
R3: 1228
Supports:
S1: 1168-1163
S2: 1150
S3: 1131
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