Monthly chart of SPX (S&P 500)with the basics. The close below the August 2004 trendline support sets us up for a test of 20 monthly sma around 1165, just above 50% 2000/2002 at 1160.75. This is a very real possibility if we lose 1178 (61.8% April 2005 rally, not shown). Resistance is now the 10 monthly at 1197. The 20 monthly has not been lost since 2003 (green line), so bulls need to hold on to that one at all costs, or face a 2001 and 2002 scenario.
This entry was posted
on Tuesday, October 11, 2005 at 6:05 PM.
