An update and analysis of the S&P 500 chart

Back on Oct. 23rd I posted this chart and commentary about the S&P 500 and where it might be headed. I think a review of that post seems appropriate as not much has changed since then. Let's see the chart and here's what I wrote then.

"I have drawn 2 red lines and 1 blue line. As you can see with the red line labeled 1, that we have broken above this level this past week. The next challenge for the Bulls is to cross over the red line 2 which crosses the axis at 1240. If it crosses above 1240, then the obvious next resistance level is at 1265. The S&P 500 closed Friday at 1238. I can't guarantee that we won't go up to test the 1265 level, so you might want to entertain the possibility, depending on the news coming out of Europe, we could surge up this week and test it. If the news is mixed from Europe, we may stay between that narrow wedge between both red lines, between 1220 and 1240. But there will be a breakout soon in one direction or the other."

At this hour today, the S&P 500 is at 1246 and the chart has been updated below. Again, not much has changed. We are still below the 200 day Moving average and that line is slanting down.