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The SP500 Index: consider this the baseline. Do it.

200 Day Simple Moving Average [SMA(200)] – 1272.27

You are here -> SP500 Large Cap Index – 1263.85

10 Day Simple Moving Average [SMA(10)] – 1249.35

20 Day Simple Moving Average [SMA(20)] – 1243.91

100 Day Simple Moving Average [SMA(100)] – 1227.66

50 Day Simple Moving Average [SMA(50)] – 1200.78

Volume – 2.57 B

Recent Highs:

Nov 08, 2011 – 1277.55 on 2.93 B volume

Oct 27, 2011 – 1292.66 on 4.91 B volume

Oct 18, 2011 – 1233.10 on 3.93 B volume

Sep 27, 2011 – 1195.86 on 3.67 B volume

Sep 20, 2011 – 1220.39 on 3.00 B volume

Sep 08, 2011 – 1204.40 on 3.30 B volume

Aug 31, 2011 – 1230.71 on 3.59 B volume

Aug 17, 2011 – 1208.47 on 3.02 B volume

Recent Lows:

Nov 01, 2011 – 1215.42 on 4.32 B volume

Oct 04, 2011 – 1074.77 on 5.21 B volume

Sep 22, 2011 – 1114.22 on 5.62 B volume

Sep 12, 2011 – 1136.07 on 3.59 B volume

Aug 22, 2011 – 1121.09 on 3.66 B volume

Aug 09, 2011 – 1101.54 on 7.10 B volume

Will work for volume. The SP500 Index is at 1263.85 established on 2.57 B volume. While that’s not great since volume can help understand the conviction behind a movement up or down, the price action on the SP500 Index leads movements up or down. So long as the price action remains above each moving average, be it the 10, 20, 100, or 50 Day Simple Moving Averages, the charts continue to improve, which furthers the sandwich's ability to eat itself. The 100 day simple moving average continues downwards with a slightly negative slope while the 10 day simple moving average looks to cross below the 20 day simple moving average after its slope was changed following the rout earlier in the week. Continued gains will quickly change the slope of the 10 Day Simple Moving Average from negative to positive while a drop of the 10 Day Simple Moving Average below the 20 Day Simple Moving Average will cause a steeper sell-off and a more cautious advance of the 20 and 50 Day Simple Moving Averages towards the 200 day simple moving average. As we speak, the SP500 Index is caught between the 200 Day Simple Moving Average and has found support on the 100 Day Simple Moving Average. This type of ugly trading will continue until the 50 Day Simple Moving Average crosses above the 100 Day Simple Moving Average, reaffirming the upward momentum behind this market. With earnings stronger than expected and outlooks being revised upwards, it is becoming harder and harder to price many of the bellwethers lower than they already are.

Upside resistance is clearly the 200 Day Simple Moving Average. Once that is broken, resistance will be at the high from November 08, 2011, of 1277.55 on 2.93B volume and the October 27, 2011, high of 1292.66 on 4.91B volume. As for support, it will be found at the June 16, 2011, low of 1258.07 on 3.09 B volume. Should that support break, the next support will be at 1249.5 to 1243.91 where the 10 Day Simple Moving Average and 20 Day Simple Moving Average are starting to become friends. The tried and true support as of recent is the 100 Day Simple Moving Average, which is at 1227.66. It’s a crazy market for sure, but we’re making it crazy. This is what a stable recovery without an asset bubble looks like, we’ll be wishing for asset bubbles again soon enough.

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