The S&P 500 is now testing the 100 MA on the daily with a potential double bottom. This is the level I have been looking at because this is a major support. As I have said before, this was a major support level many times in the past. The RSI is turning up off the bottom of its normal range also, which makes me think that there will be a rally from here. The daily stochastic has also turned up.
If the 100 MA fails on the daily then I will be watching for a test of the 100 MA on the weekly as you can see here. You can see the support level it is on now and then the lower support at 1600 is the weekly 100 MA. I would like to see the weekly 100 MA tested now rather than later personally. If we go into May and there has been no correction back to the weekly 100 MA then we should expect it to happen in May some time. By May the weekly 100 MA could be up at 1700 by that stage if there is a rally form here. It all depends on how the emerging market react in the week ahead. All three indicators on the weekly are in downtrend divergence so this is a very strong bearish indicator and can not be ignored.
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