PETA members - don’t read this.
I am sitting hear in my mancave watching the S&P 500 move from 1099 to 1100. From 1100 to 1099. How exciting! Yesterday I was totally confident that we were heading down after the "dead cat bounce," but here we are up 85 pts on the DOW and 11 on the S&P 500. Mayby the cat is not dead yet. I went into my charts and happened to notice an interesting picture. Back on October 19 2010, to S&P 500 topped out at 1100. The following day the high was 1098 and the day after that the market made one last charge to 1101 and then reversed course to the downside eight days before bottoming on November 2, 2010.
More recently the 1100 number has come into play as well - Like today! January 27th, the S&P ran up to 1099 and then retraced back to close positive for the day but off the highs. On January 28th, the S&P ran up to 1100 and backed off to close negative for the day. The market dove pretty hard for a couple of days down to 1071. Currently, the market is, as I mentioned earlier, at 1100.
If we were to put the pieces together we would notice the once we decisivley broke above 1100 December 22nd, that level became new support. When we broke through that support on January 22nd (30 days later) it has become new resistance. Here is my thought on the cat. If the S&P 500 does not close above 1100 today, the kitty may not come when you call it.
