Tuesday, April 12, 2011

Update on the S&P 500 $SPX

This SPX daily chart should serve as an update to our February post, which highlighted a new weekly high in the S&P 500.

Since that time, we've seen some chop in the stock market as the SPX worked below, and back above, the magic line around 1,311. We saw an 85+ point rally off the March low near 1,250 on the S&P and have since sold off from the rally highs in early April.

Here's an updated view of the weekly S&P 500 chart:

As we enter the 1st quarter earnings season, I'd like to highlight two posts from Joe Fahmy and Olivier Tischendorf on the current state of the market.

As you'll note from their updates, neither trader is in a mood to put on new positions here. Rather, they remain in a patient "wait and see" mode as they gauge the strength of this market. Check out their thoughts in the links above.