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1196.50 on the S&P: Say Goodbye To The Rally

|Includes: SPDR S&P 500 Trust ETF (SPY)

Just as I was about to close my last window on my computer (which was a daily chart of the cash S&P), I wanted to get a bit more macro in my perspective of the market.  So I decided to check out some different time frames for the chart.  It is always a good idea for technicians to switch up time frames every now and then as alternate ones inevitably will give you a slightly different picture and will add another data point in your analysis.  I started out with a 2 Day time frame, then 3 Day, 4 Day- nothing too exciting there.  Then I switched over to a weekly chart and saw something that gave me reason to be nervous for a pull back in the market:

The fact that we are approaching the 200 period moving average, which tends be a strong technical indicator, suggests that we will run into resistance when we reach this line at 1196.55.  What gives even more credence to this particular indicator on the weekly chart, however, is that we so clearly respected this moving average back in April of this year as well.  That gives us about 18.5 handles to go.  So no immediate need to panic.  Just a close, impending one.

Disclosure: No positions