Not much changed for the S&P 500 in the last week. The index is still trying to make its way through the top edge of an ascending right triangle.
Working its way through the top-side has been a problem for the S&P 500 in February. While resistance is putting a lid on gains for now, support has been fortified at 1340 and the index’s 12 day-moving-average. The 12 day mark hasn’t been violated since the run took the average above the dozen day line, and 1340 served as a backstop on several occasions.
You should keep a sharp eye on what happens if Wall Street takes to the S&P down to the two support levels. How the street reacts will be you GPS on what to do next. If the S&P moves below the 12 day-average, it is likely to retest the 1340 mark. A sub-1330ish close and it is probably time to take a few $$$s off the table.
A rebound off of support, or poking a hole in the top of the triangle, and stocks should burst higher. A 3% close above current levels would be an unmistakable buy signal, and is what long investor should be hoping to see. Maybe the Greeks getting their bailout money makes it happen today?
Moving on to another important set of international events that could impact the market and investors; the provocations between Iran and Europe/US are intensifying. A small misstep in the gamesmanship could transition a lukewarm situation into a hot one in blink. Already, the tensions have oil prices moving higher. Toss in a decrease in Saudi production and the pressure is building for oil prices to move higher.
We will have more on Iran and oil price storyline tomorrow.
Stock Market Trends: Is the S&P About to Break from its Shell? is an article from: 
