Trader Update -data point 25 January 2011
...the SPX 500 remains rangebound between the January 18 High *1296 and the January 11 Low *1270 with bulls at a slight advantage over bears as expressed in the leadership stock ration +0.69.
...with a +0.69 reading and institutional selling still up-trending, the market remains vulnerable for further downside to re-test the January 11 Low *1270 level for the reminder of the week
…a successful defense of the January 11 Low *1270 would leave the index on track to take out the *1300 Psych barrier to test the August 2008 High *1313 -with potential follow through to upper channel resistance current *1332 in the 3-month daily trading set-up
...on the flipside, a violation of the January 11 Low *1270 signals continuous weakness and a Close below the January 10 Low Key Support *1261 indicates a deeper sell-off is already underway with the December 27 Low *1250 a minimum target; potential to trade lower to reach trendline support current *1214 on the 6-month weekly trading set-up