SP500 Hits Monthly Resistance but Will it Hold

Jan 11, 2010: 3:13 PM CST

We’ve come up to another key level to watch in the S&P 500, but this time, it looks like the last major line of defense for the bears/sellers in this market… and with further upside momentum, we’ll shatter right through it too.

Let’s see this monthly level and note what to expect from here.

We’ve hit the 1,150 target today, which is the falling 50 month exponential moving average, the last monthly (obvious) line of defense for bears.

We’ve already broken above the 50% Fibonacci level at 1,121, and so 1,150 was the next immediate target to play for, which is where price opened this morning.

There’s nothing magic about the 1,150 level, but it does provide an overhead resistance barrier that bulls/buyers are going to have to push through to keep the rally from March going.

A break above 1,150 sends price to challenge the confluence resistance level (not shown) at 1,220, which reflects the 200 week simple moving average and 61.8% Fibonacci retracement at 1,225.

It appears that there is ‘open air’ between these two levels on a break of 1,150.

This would be one of the ‘last shots’ of the bears to affect prices lower, so let’s watch this area as we progress through the trading week.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

7 Comments

7 Responses to “SP500 Hits Monthly Resistance but Will it Hold”

  1. SP500 Intraday Breaks Rising Power Trend | Afraid to Trade.com Blog Says:

    […] had mentioned in yesterday’s update that 1,150 is a critical overhead resistance target, and so far that resistance level IS holding as expected (see full post for description and monthly […]

  2. SP500 Intraday Breaks Rising Power Trend | Penny Stock Trading System Blog Says:

    […] had mentioned in yesterday’s update that 1,150 is a critical overhead resistance target, and so far that resistance level IS holding as expected (see full post for description and monthly […]

  3. Why the 1,150 Level is Important SP500 Resistance | Afraid to Trade.com Blog Says:

    […] Level is Important SP500 Resistance Jan 15, 2010: 1:18 PM CST // I’ve been saying that the 1,150 level is the next likely target once 1,121 was broken, and the market is struggling to overcome the 1,150 level […]

  4. Why the 1,150 Level is Important SP500 Resistance | Penny Stock Trading System Blog Says:

    […] been saying that the 1,150 level is the next likely target once 1,121 was broken, and the market is struggling to overcome the 1,150 level […]

  5. An Intraday Internals View on the 1,150 Level in the SP500 | Afraid to Trade.com Blog Says:

    […] “SP500 Hits Monthly Resistance… but Will it Hold?” […]

  6. An Intraday Internals View on the 1,150 Level in the SP500 | Penny Stock Trading System Blog Says:

    […] “SP500 Hits Monthly Resistance… but Will it Hold?” […]

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    […] “SP500 Hits Monthly Resistance… but Will it Hold?” […]