Does the S&P remain good value?
15 October 2009 The Technical Trader’s view : WEEKLY CHART We remain bulls of the S&P. The market has been driven better by the Head and Shoulders Reversal in place. But there is more to go – just 50% of the minimum move has been achieved. There has been a slight pause at the Gap resistance at 1110-1077. But now the market appears to be penetrating that resistance. DAILY CHART The day chart suggests a solidly-constructed bull trend. The Prior High at 1011 was good support. And now the recent High at 1075 has been overcome with an encouraging surge of volume. That should act as good support and ratchet the market higher still. The Macro Trader’s view: The S&P has enjoyed a sustained rally since March and although there have been periodic corrections driven by doubts over the durability of the fledgling recovery, traders have on each occasion overcome their anxiety and the rally has extended. More recently the market suffered another correction after a disappointing ISM manufacturing sur
