On March 7 (US March 6), I wrote about the SPX sitting on the fence. I received messages asking me if SPX will go higher when the bull candle appeared at the close of March 7th candle. Well I have done my analysis and price indicated a resistance at 2000, which prompted me to write the analysis on SPX. Yesterday 8th March closing certainly gave some hint on the market direction which I had called for.
The clues of market movements lies in the relationship of inter-market analysis. Of late, the SPX’s movement is based on the movement of Crude Oil.
If you look at the Crude Oil chart which I had attached, you would see a clear “W” in the price. When I saw price trading near 37.08 resistance, I suspected that the SPX might slow down its bullish tempo. Last night both showed minor weakness. We are not out of the woods yet for those who shorted the SPX, price still has to break strongly below the 1980 line for confirmation of bearish continuations.