You're making me stay
Why do you hurt me so bad?
--Pat Benatar
Last week we proposed SPX 1780ish as near term support for the index.
This week's action clearly delineated this level as a major battleground, with the bulls reclaiming the flag after multiple assaults by the bears.
Bulls will argue that their successful defense bodes well for the tape. Bears will counter that classic technical analysis says support weakens with each pass (as layers of prospective demand are 'spent').
Next week should be interesting...
position in SPX
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
1 comment:
The technical analyst's task is to interpret the action of the market - the flux in supply and demand mirrored in the market. In this work, it doesn't in the least matter what creates the supply and demand. The fact of their existence and the balance between them are all that count.
~John Magee
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