Thursday, April 12, 2012

SPX Is About To Test Important Resistance at 1400

SGS is NEUTRAL (As of close of 3/6/2012)
In CASH (closed all positions @ SPX 1254 on 12/22/2011) 

SPX is about to test strong resistance at 1400 where its 20 D-SMA and Primary Down Trend intersect.  Should SPX clear 1400, it would very likely rally to multiyear new highs. If SPX cannot clear 1400, it would sell off to retest its 50 D-SMA and Primary Up Trend Line supports again.   I believe those support would fail and SPX would sell off further to test its early last March lows around 1340.