SPX - 985 Triple Resistance

(Click On Charts To Enlarge)

After rallying straight up 120 SPX points from 865 to 985, the SPX is consolidating in an Ascending Triangle, with TRIPLE resistance at roughly 985. I like that. Parabolic Rallies (like the 120 pts.) tend to have a Parabolic Return because there is no structure built along the way, and no consoliation of the gains. If the SPX can take out 985, that likely will bring in shorting covering (buying) and new longs who want to get in on the breakout (more buying). A target of roughly SPX 1030 would be IN PLAY. (985 high - 940 low = 45 Points added to a breakout above 985 = a target of SPX 1030. Be aware that targets against the dominant trend are less likely to get MADE, but all of the targets so far off the 865 have been MADE. (see Charts #2 and #3).

I'd prefer to see SPX 985 get taken out tomorrow morning on a nice Breakaway Gap that is not too far above SPX 985.

In Chart #3, by the way, note how the SPX came back and retested the breakout TWICE (see arrows). That's called a Trendline Validation, and also is called a DOUBLE successful retest of the pattern breakout. Those are very, very nice ;)