It was a quiet, boring trading week until today, or more exactly until the last hour of trading when SPX lost 24 points. The week ends with a 22 points loss but on monthly basis SPX gained over 30 points making this month the 7th straight month on the upside, a pretty solid rally.
The bullish momentum is still intact on all time frames. The 4 hours chart still shows a bullish EMAs crossing but the price crossed today both EMAs. SMA 120 is at pretty safe distance, 40 points bellow but remember that not too long ago the difference between price and SMA 120 was no less than 100 points, one of the biggest difference since the March 2009 bottom. So the market remains bullish but not as crazily bullish as it was a couple of weeks ago. Notice that the 7 months rally uptrend line is also around 1,590 so this is the best support this rally has.
Just above SMA 120 and rally's uptrend line is SMA 50 on daily chart, a level that behaved as a very good support in the last 7 months, so somewhere in the 1,590-1,600 area we should see a fierce battle between bulls and bears.
Weekly chart shows a very bullish picture, with weekly DMI still at a high level.
In conclusion, SPX remains bullish on all time frames. To change the trend bears need to push SPX bellow the 7 months uptrend line that is now around 1,590. Sounds easily done since SPX lost no less than 57 points since its all time high around 1,687 but it may not be so easy. Bulls have bought every single dip in the last 7 months and I will not be surprised if they are going to defend the 7 months uptrend line once again.
Have a nice week end!