SPX: Bottoming Right Where It Should Have
In recent weeks, I have talked about some downside targets and said if they were met, I add to my positions – first, in the S&P 500 (SPX). Actually going back to the late September lows (bottomed Sept. 26, on Yom Kippur), I was still holding out for a pullback that filled that Sept. 11 gap at 1429 in the SPX and, preferably, a bit lower to the prior double-top highs in the SPX .
Of course, the Sept. 26 pullback bottomed at 1430.53, so that gap was never filled. And the obligatory return to prior highs also never quite occurred. That is, until last Friday. Recall, the Aug. 21 high in the SPX was 1426.68. After backing off from that level, the SPX popped to new highs achieved on Sept. 14 at the 1474.51 level. Such a move almost necessitates a return to prior highs, which were from Aug. 21 at 1426.68....490 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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