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On 1/11, the “Power of the Pattern” reflected that an 800 Pound resistance line was 3% above prices, at the time of the post (see post here)
From a multi-year perspective the S&P 500’s rally of late has pushed it up against a key resistance line and the VIX is reaching a support zone that was important in 2010 and 2011. Until the 500 index can knock the 800 pound aside, investors will want to protect risk asset values up here!
As always Chris, great post.
I will air on the side of caution here. If resistance is broken,
then I totally agree with your rail index post. Market should react very positively. I am waiting to see before adding new positions.
Do you think, the S&P rally as well as the moves in gold and silver are due to anticipation of QE3 announcement?
Metals really took off after the previous QEs.