The S&P 500 gave a weekly close above the much awaited breakout level at the 61.8% retracement level of fall from 1576 to 666. This is bullish . The formation from the lows of 666 has taken shape of a cup with handle which is a bullish pattern ,shown in my weekly post at http://vipreetinvestments.blogspot.com/2010/12/s-500-update-6th-december-2010.html, throwing up a target of 1774 ! Unbelievable at the moment! But the signs of bullishness are surfacing. The weekly 50 and 200 ema are closing in to give a bullish crossover.
Immediate target is 1246 of the inverse head and shoulder pattern . Daily oscillators though are in negative divergence having failed to keep up with price in reaching higher levels.Use dips to buy provided the breakout does not prove false.
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