Upside Target For The S&P500
Stocks were higher today with the S&P climbing up up over 3%. In the above chart I marked off the most likely upside target for the S&P which would be the 940 to 960 area. This zone of resistance is comprised of the year high as well as the 200 day moving average.
In my opinion this is a critical zone of resistance to watch for because depending on how the market handles this area will set the stage for a either a major selling opportunity or confirmation of a new bull market. Let's see how things unfold.
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5 comments:
hi kevin
thanks for the new blog
What are you looking at for a new bull market confirmation? Is it a monthly close above 200DMA?
Usually when the S&P is above its 200 day moving average for several days that is considered to be confirmation of a bull market.
Usually but not always. We got above the 200 day moving average for several weeks back in March of 2002. Of course the moving average was still declining like it is now. I believe that we also had a monthly close above the 200 day moving average back then.
I think getting above a rising 200 day moving average would be better but that will take some time.
don't think it'll cross 1000
I have heard about the golden cross , has this occured yet >
A crossover involving a security's short-term moving average (such as 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level.
As long-term indicators carry more weight, the Golden Cross indicates a bull market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new support level in the rising market.
Technicians might see this cross as a sign that the market has turned in favor of the stock.
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