S&P 500 Apr 23 to Apr 27 OutlookBy on 2012 Apr 21 Sat 7:05:00
Rejected the gap below early in the week, with a news shock breakout to the upside above Monday high, gave us a rally to Y+1 and the resistance zone right above. ES failed to go higher since and capped at Y+1. That led to a flush back down to Y-0. But that was all we got to the downside. A strong bounce again to challenge the Y+1 resistance once more. Closed the week at midpoint.
It is not clear on a chart that focuses on the latest few weeks. But on a long term chart, you will see that ES is fighting to hold previous year high here. No clear direction until ES can move out of this range.
The long term support stands at 1350-60. A fight there again will make it clear if ES is ready to drop back down but I suspect it will not be this easy for ES to slide down there.
If ES can clear B+1 quickly, looking for a run to above B+2.