SPX hitting its 200 day moving average of 1264 now. this is the next resistance up, and a very important one. we have been trying to break the 200dma for the past several months now, and every time we have tried it has sent us back down to test new lows. friday we tried to break it and didnt succeed in holding it. this morning we broke it, and again did not succeed in holding it. this is a double failure so far.
Ironic, isn't it, that SPX hits 200dma and then S&P rating agency sends markets down below 200dma with downgrade scares
EDIT: new trading ranges: 1244-1265
Above 1265, we hit new 1300 highs without stopping. This would signal a very large decline later on as markets rally past 10% gains on small volume. This is reflective of what happened in October and mid-November crashes. Good shorting position on the top.
Below 1244, we MUST hold 1235 or else we are sent back to retest new lows. It may be likely to see a reasonable 1-2% pullback in the markets after a 10% rally.