SPX added another 14 points today confirming the break out of the "symmetrical triangle" not so long time ago. After months and months of indecision the market has turned positive once again. I base this conclusion on two indicators that have turned bullish, weekly DMI and EMA20/EMA40 on weekly chart that just turned bullish.
As I mentioned in the previous post I started watching the EMA25/EMA50 pair on hourly chart once again since it seems that we are not going to have as much volatility as before. EMAs are bullish but also notice that SPX is above rising SMA 120. A little drop is possible in the next few days since I see SPX 10 points above rising EMA 25 but remember it can get as much as 20-30 points before a downside day.
As a resistance level I don't see anything significant from here to 1,350-1,370. It is important to see market above 1,370 before an eventual correction to confirm the bullish action started a few weeks ago. A serious drop before touching 1,370 is going to cancel the current bullish momentum. However, a correction after SPX moves above 1,370 is not going to be as significant.
All the best!
babaro
As I mentioned in the previous post I started watching the EMA25/EMA50 pair on hourly chart once again since it seems that we are not going to have as much volatility as before. EMAs are bullish but also notice that SPX is above rising SMA 120. A little drop is possible in the next few days since I see SPX 10 points above rising EMA 25 but remember it can get as much as 20-30 points before a downside day.
As a resistance level I don't see anything significant from here to 1,350-1,370. It is important to see market above 1,370 before an eventual correction to confirm the bullish action started a few weeks ago. A serious drop before touching 1,370 is going to cancel the current bullish momentum. However, a correction after SPX moves above 1,370 is not going to be as significant.
All the best!
babaro
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