In the October 27, 2010 blog post (“Market Overview – Part V: Stock Market”) I showed two charts of the S&P500.
As we are now approaching various important technical levels of the S&P500, I have updated one of the charts, as seen below:
chart courtesy of StockCharts.com; annotations by the author
click on chart to enlarge
As one can see from the chart, one interpretation that can be made is that of a (completed) “Cup & Handle” chart formation as denoted by the green line. I have added a red line to now denote the 1220 area. I think it would be significant if the S&P500 falls below this 1220 level now, as the 1220 level is technically significant in many different ways.
The Special Note summarizes my overall thoughts about our economic situation
SPX at 1265.42 as this post is written