TECHNICALS -SPX

A few weeks ago, I was looking for a breakout in the SPX in one direction or the other - in light of the recent tight range- and one indicator I was looking at for direction was a move of the Bollinger Bands outside the Keltner channels. Well that has now happened (click on picture) as the markets have moved to the down side. Note however that the 1,270 intra day low on January 23rd has still not been touched.

A move down to those levels is probably in the cards for next week as is probably a move back to today's high near 1,315. Note that 1,315 was prior support and it showed to be pretty pretty good resistance today on the morning melt up.

The 50 SMA also coming back down and a recent test of that level at the 1,370 area would not be shocking to this fish.