Saturday, February 1, 2014

Critial Support at SPX 1770 Must Hold

RTS is Selling BIDU and Buying ALXN in its place on Monday 2/3/2014

Indices Long Term Current and Past Portfolios
Updated for buys on 1/31/2014

So far the sell off has been nothing more than a garden variety profit taking pull back in a powerful bull market.  There is a critical support at 1770 for SPX.  Chances are good SPX retests that support on Monday and then rallies to a strong resistance (triple resistance, shown by orange circle) around 1800, possibly by Tuesday or Wednesday.

Possible Senarrios for this coming week:
  • (A) Bearish Case (20%): A close below SPX 1770 would signal more selling to test Primary Uptrend Line (PUL) around 1750.  A close below PUL would be bearish and would signal a test of 200 D-SMA. 

  • (B) Bullish Case (80%): Support at 1770 holds, SPX rallies and closes above its 50 and 20 D-SMA.  Rally continues to Primary Downtrend Line (PDL).   A close above PDL would signal new all time highs for all major indices.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.