S&P 500 Index Chart Update
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Here is an update of my technical parameters for the S&P 500 Index chart. Since my last update of this chart, the S&P 500 Index has moved above the cyclical recovery rally high of 1474.51. This can be seen in the close-up chart below. The more upper of two horizontal red lines represents the 1475.00 area, which for the moment has been left behind as the market rallies. The only major resistance left is the 1576.00 all-time high, which is represented by the thick white horizontal line.
The index is trending higher in three bullish trend channels of different degree. The trend channel of minor-minor degree is shown as the upward sloping parallel white lines, and represents the short term trend of the market. A more significant minor channel is shown as the parallel yellow lines and represents the index's intermediate term trend, while the major trend channel is depicted by the thick red parallel lines and defines the longer term trend for the index.
The next chart shows how these three trend channels fit into the index's larger picture and showcases the sideways nature of the index during this secular bear market. The index's support rests at the various trend channel support lines shown in the first chart, as well as at the key 1350.00 support area depicted by the horizontal blue line.
In conclusion, as I have previously mentioned, even as some suggest a disparity between the market and the economy, the technical parameters of the S&P 500 are very transparent.
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© 2012, Dominic Cimino of Preferred Planning Concepts, LLC (You can explore the services offered by Preferred Planning Concepts by viewing us on our website at www.ppcplanning.com) Any redistribution, reprinting, or reference to this chart or content is allowed so long as reference to the author and source is acknowledged.
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