S&P 500 Technical Outlook (SPY)

S&P 500: In early January an identified head and shoulders pattern ignited an ascending trend that has proven unstoppable so far. Exactly in the same situation as the Dow Jones, the S&P is in a resistance level last reached on May 2011, the 1375 level is proving challenging to overcome which may be highlighted by the fact that the 10 and 20 day moving average was broken down today. The two possible scenarios are the S&P breaking down towards resistance levels of maybe 1340 and then 1286, the likeliness of this is highlighted by the divergence shown in the MACD. In the other hand the S&P may keep going up in road to reach its historic high of 1560, this perspective is stressed by a RSI reading above the 50 level. An intraday technical analysis shows full convergence in the downside of the 10, 20, 50 and 100 moving averages with the Index bouncing up and down the 1344 level. In the downside the immediate support level is 1342 with an upper resistance level of 1348.