As mentioned late yesterday here (http://steadytrader.wpengine.com/why-sp-500-1300-is-important-until-it-fails/), the SPX 1300 level has decent significance…until it fails that is. For now just note the nice bounce off 1300 (yes i discussed this in the morning line-up newsletter yesterday and said we'd buy a test of 1300ish) and how that level also coincided with previous resistance as well as a fibonacci zone to respect.
Where to from here? Dunno Mack, but if we get one more up-day confirmation today I could see us soon overtaking the February highs. Single bullish candlesticks like yesterday aren't enough to start piling hard-earned coin into upside bets. But they should be taken seriously enough to watch for follow-through.
Target levels you say? I am sticking with my cycle high target somewhere between SPX 1380 – 1450. I know, nice wide target Porky , but a) picking tops and bottoms ain't easy and b) actually not necessary to make money in this game.
To the weekly charts we go. Note the V-shaped price 'recovery' and very wide and steep trading channel (red lines). We are smack in the middle of that channel, so technically both 1200 and 14500+ are possible as next targets, but given the trend one has to give more odds to higher prices.
Of course, next week U.S. and European earnings seasons start getting really frisky, so volatility could/should increase and we might get a resolution to the current key levels.
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