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S & P 500 - a tipping point to watch!

This morning going through my many graphics with annotations, I came across this chart of the S & P 500. In the month of July 2009 , I conducted an analysis of the index, the prospective target had been set for the index at that time was the area 1.200 points. For almost 10 months, I used another chart to track the index, then this morning, reviewing the chart and its prospective target, a smile appears on my face ...

Fifteen months later, it is clear that the target area of 1.200 points was extremely well set the trend of the curve points of the S & P 500 with an error of only 19 points on top of last April was located at 1.219 points.

September 26, I indicated that the S & P 500 headed for the creation of a new high, but was initially stoned zone resistance 1.219 points, closing the week was held to 1.225 points. Significant resistance areas are still tipping points to be observed with great attention to identify the strength of a security or index, if the S & P 500 scales beyond 1.219 points and he keeps on top of the area resistance of 1.219, this will represent a message upward force.

If a decline in the index occurs, but it remains above the moving average support of 7 weeks, it does not break any problems for the short term bullish momentum, cons by a break of this support could represent moving average a change in direction of upward momentum. But for now urges the bursting of the area resistance of 1.219.

Inside the last analysis S & P 500 , I had indicated an objective prospective 1.279 to 1.309 points, this calculation was determined by comparing the differential between the top and base of 1.040 and adding to the exit point upward in the structure of T-type E-E (left shoulder - Head - Shoulder right).

In the current context of the index could also set a target prospective 1.424 points using the calculation of the swing (1.219 to 1.014 = 205 + 1.219 = 1.424 of the target points).

To view the above analysis on the S & P 500, click here

Here for the simple pleasure of a replay, analysis July 27, 2009, it is always very interesting to see important to read to better understand and analyze the progress.

Since exactly 10 days, all North American indices, Dow Jones, S & P 500, New York, Russell 2000 and the Toronto index moved from a downward-type structure Chartist E-T-S has different structure potentially very bullish (cup & handle or E-T-S reverse). Wednesday, July 15 last, "I told you that the structure will bear by day E-type T-P was still present on the markets, so that this structure is totally disabled, a rise above the moving average of 200 days was necessary with a step beyond the previous peak.

So the process is currently underway and all indications are currently above their average Mobile 200 days, which is very positive. The area of MM 200 days that was how resistance has been smashed by the high for all indices mentioned above, which represents the upward force, consolidation of market potential over the long term moving average 200 days is the first harbinger of a real recovery bullish.

A golden cross is in training for the Dow and the S & P 500, the intersection of the short-term moving average of 13 days with GM's long-term 200 days, and already had Venue for the Toronto index, New York and the Russell 2000, which is another sign of strength to become the indices. The short-term joined the long term ... MM and 13 days preparing a resume or picked it up bullish over the long term moving average, which is always a highly positive sign.

• bullish structure in place on the Dow Jones is a E-T-E inverted and its objective is to prospective 11.660 points.

• bullish structure in place on the S & P 500 is an E-T-S and also reversed its goal of 1,200 points is prospective.

• bullish structure in place on the Toronto index is a structure type cup with handle (cup & andle) and prospective short-term goal is to 11.917 points in the calculation with the height of his short-term fluctuation corridor which is to use the calculation of the swing.

Analysis original July 27, 2009, here