After having overcome the 1336 – 1340 resistance area the S&P 500 is now back at the 1358 – 1362 resistance zone, which in April and early May acted as support. This zone also coincides with the 61.8% Fibonacci retracement level of the early May – early June sell-off and as such is significant. Also of note is that the 50 day moving average (yellow line) has again been entirely disrespected…I have often pointed out how weak a support/resistance level the 50 day is on the S&P 500.
From here next resistance areas are 1370 and 1390 – 1410, which is the upside target should the inverse head and shoulders pattern work out in a textbook fashion.
On another note, see the weekly chart of gold again…we are still retesting the longer-term uptrend from underneath.
