Wednesday, February 2, 2011

Trade Update -data point 02 February 2011

...the SPX 500 moving closer to its apex end of February with risk of volatility increasing

...although institutions switched back to accumulation, the selling into strength up-trend remains

Note: caution condition remains in the the market until institutional selling changes to downtrend

...the SPX 500 trades modestly lower with no technical damage so far. Above daily trend line support *1292 and short term momentum support *1298, the market remains poised to head higher for a challenge of the August 2008 High *1313 and upper channel resistance current *1335 on the 6-month weekly trading set-up

Note: todays uptick power clearly indicates selling into strength  with overall daily market internals tilting to bearish. This is not a look for a splendid new advance, but rather the look of topping out soon

..looking further ahead, the index appears to be heading all the way towards the *1420 measured objective in the longer term. 
However, the current *1335 level on the 6-month weekly trading set-up coincides with the 75% retracement of the 2007_2009 break and may turn out to be another potential turning point for a bearish reversal towards the end of February
Kind Regards

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