Sunday, April 15, 2012

SPX Is About To Test Its Primary Up Trend Line

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

The sell off on Friday was damaging to the bull case. Primary Up Trend Line (connecting lows of 10/4/11, 11/28,11 and 4/10,12, orange) is the key support for SPX. Breaking and closing below it, which coincides with closing below recent lows (1357), would bring on broad selling that very likely would send SPX down to test supports at 1360 and 1340.