SPX Nears 50% Retracement

Like the DOW, the SPX is close to reaching the 50% retracement level of the 2 month move down. This 4 day really has been uncontested (no pull back days), making the potential for a pull back this week a definite possibility.

There are a few things the bulls have going for them this week:
1 - Just in time for a Santa Claus rally
2 - Left over euphoria about a potential .50 Fed rate cut
3 - Banks and Broker Dealers seem to have bottomed

However, the bears can't be counted out because...
1 - The economy is still weak
2 - Subprime exposure is still not 100% defined
3 - 1490 is a horizontal resistance area
4 - After 4 straight days up, there is potential for a pull back to retest support

SPX Daily Chart: