Why 1370 is So Important

I am bullish on this market. I do not rule out a pullback continuing, but in the end believe the S&P 500 will make new highs in the not to distant future. Where it stands today, the 1370 level has gained a great deal of importance in determining where this pullback will end. From the chart below you can see that it is a retest of the May 2011 high from the Fibonacci levels drawn. Notice that the Fibonacci Fan Line appears to have knocked it back, and very near the Measured Move higher at 1434. Was it just ready? The second important feature on this chart is the rising uptrend line in

blue from the October 2011 low tail that on this weekly chart crosses right at the 1370. There is still talk of more pullback since the Relative Strength Index (RSI) is falling, although bullish, and the Moving Average Convergence Divergence (MACD) indicator is fading towards the zero line. A bounce at 1370 would mean a lot to technicians everywhere. A break and close below it on the weekly chart brings the July 2011 resistance at 1345 in as the next support level.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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