Trader Update -data point 03 February 2011-

 

...institutional accumulation improved but remains still in a technical down-trend. Todays market internals again remain uninspiring and signal caution.

 ...the SPX 500 appears to be in a consolidation pattern oscillating around daily trend line support current *1300, bouncing off *1292 former resistance level with an intra day Low *1295
Above support,  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

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

Note: liquidity levels remain in high expansion territory and depending on institutional behavior, the market may continue higher or correct as indicated by the VIX chart pattern

Kind Regards