Equities: Prior Support Is Now Resistance

The 1905 line proved to be butter under the hot knife of sell orders and should not be much stronger on the way up. We are looking for new highs before the next major downturn. S&P 500 1885.91 up 23.15 on the day, DJIA 16,365.73 up 248.49. The 50% retracement of the entire downmove is 16,429.65.
From Afraid to Trade:

Surging Toward the 200 day SMA Target

As was generally expected, the market retraced higher after several down-days in a row took price to a key monthly support level (1,825).

Let’s look at the current S&P 500 and Dow Jones charts and highlight the surge back to the underside of the broken 200 day SMA:

On the breakdown under the confluence of the 200 day SMA and the August price low with the 1,900 “Round Number,” the S&P 500 collapsed into a vacuum of buying until bulls supported the market aggressively off the 1,825 target.

Now, we see a logical bullish price pathway surging higher toward the underside of the 200 day SMA and this same confluence....MORE