With yesterday’s surge, SPX has break 1130 and is on its way to 1170.
Since SPX breaks through the kumo support in early Sept, it has retraced once and remains above the kumo support.
Just to recall, during the breakout in early Sept, we have a few indicators aligned for the bullish trend.
- Big bullish reversal candle
- Breakout above kumo
- Force Index bullish
- RSI pointing upwards
- And subsequently, the bullish Tenkan sen – Kijun sen cross
On the Weekly Chart, it is also very clear that the bullish rally from last year is intact and has hold.
If 1130 holds this week, we should be heading towards 1200 (my estimate before Feb 2011).