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Markets Go Up - But Plenty of Resistance Ahead!

In one of my previous posts, I looked at the long term charts and found the following:

What do we see from this chart can be summed up as follows:

  • The current 200 month ESA is at 1000.49
  • The current 50 month ESA is at 1177.12
  • The current 12 month ESA is at 974.17
  • The current down trend line is at S&P 1009
  • The S&P is currently below the 12, 50, and 200 month ESA's
  • The 50 month ESA is below the 200 month ESA (negative golden cross)
  • The 12 month ESA just went below the 200 month ESA

There is way too much resistance between S&P 974 and 1009.  the 200 month MA, 12 mo MA will be too much to overcome.  We have grown very tired of waiting for this trendline to break, but the excessive upside movement just sets up a very big downtrend to come.  The very long term charts are extremely negative right now and those who are short-sighted will most certainly lose big.  Expect this market to puch to the near S&P 1000 mark, and there is we will finally go short.  We have waited for a trendline break as an entry point, but the market could never pierce it, but as it falls into the 975-1000 area, we have a clear spot in which to place our shorts.