Tough resistance level

One more time 1,100 seem to be a tough level to conquer. Besides being roughly the level where SMA200 resides, 1,100 is the level where most of the volume occurred in the last 14 months.

I didn't want to make a big deal about this but on Friday SPX managed to climb above the downtrend line for the first time since the start of the correction. Also EMA50 did cross EMA100 on 30 minutes charts. The reason I didn't make a big deal is because we saw something similar on NASDAQ a week ago and the market still went down and made another low. So I think we should get more conservative and watch these EMAs crossing on a 60 minutes chart. Plus we still have a declining 5 day moving average.

It may also be possible that market is going to stay into 1040-1,100 range for a while until the European saga is over. In this case one should use other indicators and oscillators such as Williams %R. Usually I am out of the market when it does trade in range since I like the ride the wave either up or down.

Let's wait for tomorrow for further clarification. We should watch for 1070 and 1040 on the downside as potential support levels and of course 1,100-1,110 as the obvious resistance level.