The S&P500 Since 2007

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.

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The Special Note summarizes my overall thoughts about our economic situation

SPX at 1265.42 as this post is written