S&P 500 Grinding Higher


While the European downgrades took the wind out of last week's rally, the S&P 500 is technically setting to push higher.  The index target remains as shown on the following chart.

The index cooled off on Friday amid European downgrades.  However, the uptrend from December remains intact.  The index is building strength to press higher.  The target zone remains in the 1308 to 1311 area for the S&P 500.

The chart supports a move higher in the near term.  Having said that, utilizing a prudent strategy as the index approaches the target zone makes plenty of sense.  

Your trendlines are completely off and your target is incorrect.  

The trendlines don't line up on this chart because the lines originate from an earlier time period not shown on this chart.  A chart using a larger time frame going back several years was posted on January 7th showing why the trendlines are drawn in this way.SC