This stuff is not rocket science...look for big support and big resistance and make your bets...
Divergent test of 900 day MA, and subsequent gap back above 1867 SPX probably does not bode to well for bears, at least for next number of weeks anyway...
And with Value Line Geo extremely overdone to the downside after double tagging the 900 WEEK ma, I could see that one launching multi-week/month ramp up towards 200 day MA....where SPX might go if that were to happen remains to be seen
http://www.traders-t...-nysi/?p=741726
Here is the aftermath of that divergent test on SPX, and gap back above 1867. Really, on my stuff, IT long setups don't get a whole lot better than that one. The big gap now to watch on a pullback is the one at SPX 1990, as you will see on the SPX hourly below. If bears cant reclaim that relatively soon, bear may be done before it ever really got started, and all we saw in Jan/Feb was a decent A-B-C correction into LT support zone....
SPX Hourly
And here is the Value Line Geo daily and weekly charts bouncing from extreme oversold right into what should be the dividing line resistance between bull and bear going forward. At the very least, I expect there will be a significant battle in this area, even if bulls eventually prevail.
Value Line Geo Daily
Value Line Geo Weekly
