S&P FIGHTING WITH TOOTH AND NAIL AT CURRENT LEVEL

S&P500 despite all the bearishness is holding up well. Here’s why

Here’s the Daily Chart of S&P500

 
As you can see in the chart above: S&P500 seems to have strong Horizontal support at 1770. First, in October – it took a while for index to break past 1770 and when it did that in Nov – it never looked back. Post breakout: index consolidated a lot above 1770 and then in December, S&P500 managed a stunning recovery from 1767 all the way to 1850. Now, it has pulled back pretty violently but again seems to be holding its head above 1770 despite all the bearishness.
That’s not all: the current Horizontal support level also converges with 100 dma: the solid support level of 2013

 As you can see in the chart above: S&P500 during 2013 managed to hold its head above 100 dma every time index pulled back. It seems to be doing the same now – trying its best to hold 100 dma. Will it succeed? We will wait and see. Rest assured breakdown below 100 dma will lead to panic and S&P500 can slide all the way to 200 dma i.e. 1706. So, that’s why the current level seems a very interesting place to watch the market.

OUR PREVIOUS REPORT ON S&P: 

http://trendzofmarket.blogspot.in/2014/01/after-brutal-friday-correction-where-is.html

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