taken from mkt
letter
We will concentrate our analysis on the S&P 500
today.
Institutions consider the S&P 500 to be a good measure
for the strength of our economy because of the diversity of sectors it is able
to represent.
The S&P 500 failed at its Fibonacci 61.8%
golden ratio in August and has made a lower top and a lower bottom since then
... so that is a negative.
But ... last Friday, it rose back up to its
April/November resistance line and today it will challenge this
resistance. You don't want to see the S&P fail this test and make a
lower low, for it did, that would mean that a further correction would
occur.
If it can close above today's resistance and then rise and close
above its next resistance line, then the S&P would be poised for a strong
move to the upside.