Wednesday, February 1, 2012

There was no question the bulls were in control today.  We ran up into the 1330 level and cleared several resistance levels by noon.  After lunch we began making lower highs after we lost the intraday support around 1327, ending the day catching support at 1323 and pulling up another point.
Instead of putting resistance lines all over the chart, i marked the 1333, 1330, and the 1325 levels; and left the circle to represent an "area" which no resolve has occured in my opinion.  It would not be surprising to see a backfill to the 1320 or even the 1313 level and still remain bullish.
With that said, it's not out of the question for a move higher and above 1320; albeit not as likely.  The chart   shows that there is a lot of different ways the market could play out within a range of 1300 to 1330; and still keep an upside bias.  Some consolidation in this range would be healthy for the market; and as we go forward the support / resistance levels will reveal themselves a little better.  Hope everyone had a great day.  Take care and happy trading.
                                                                                                  click chart to view

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