Pushing Higher, but Momentum Slows

Fairly choppy week for the markets last week. We went from strong upward to trend to a sideways markets. A close above 1180 on the S&P 500 would indicate the trend is back in play.

Fairly choppy week for the markets last week. We went from strong upward to trend to a sideways markets. A close above 1180 on the S&P 500 would indicate the trend is back in play.

Overall though the trend remains up, as can be seen by the upward sloping trend line start on Feb 5. That trendline along with horizontal support comes in at just above 1160 followed by 1153 and then 1140. A drop back below 1150 would indicate hesitation in regards to the recent highs. Slight penetration is fine, but a move much below 1140 warns of a larger correction.

Monday is a holiday in many places throughout the world, so another reduced volatility week is likely. Average movement is about 30 points in a week, so being shy of this is not unexpected.

As mentioned a close above 1180 would indicate continued upward movement as long as the major support levels mentioned are not penetrated. Target for another move higher is 1198.

Cory Mitchell is an independent trader and analyst specializing in short to medium-term technical strategies. He is the founder of http://vantagepointtrading.com, a website dedicated to free trader education and discussion. After graduating with a business degree, Cory has spent the last six years trading multiple markets and educating traders. He has been widely published and is a member of the Canadian Society of Technical Analysts and the Market... More