SPX Levels

The SPX gets another chance over the next few days to attempt a higher high on the daily charts. An earlier attempt this month failed. A close above 1396 would do the trick.

There's been a lot of talk about bullishness and it seems technically feasible to get a rally back up to retest the 100MA at 1383. The real test will be to make it up to and over the 1400 area. Once it makes it up and over it would make technical sense for it to consolidate in the 1380 to 1440 area for a while before either moving up or falling back down.

Keep in mind that the intermediate trend is still DOWN (as illustrated by Downward Trendline)

Looking at the chart, one is reminded about the extremely short term memory of the market. Somewhere on that chart is the fear brought on by the weak GE earnings, the exuberance of the Intel earnings, and countless other news items that continue to keep the market extremely volatile.

With weak economic data and questionable earnings to come, the market is likely to do what it always does -- go up and down. Enjoy the uncertainty, take risks but avoid danger.

Can you spot the potential Bear Flag on the SPX Daily Chart below?

SPX Levels: