Saturday, March 26, 2016

MTU Weekend Ed. - 2nd Major Retest (3/24/16 close)

As discussed in  Gap filled, potential pullback next (3/18/16), SP500 did pull back this past week.

The decline represents the 2nd major retest for the current upswing. Will it be as successful as the first retest? See Chart 1.

If MA200 and the prior topping channel fail to offer support,  lower targets would be at play such as a minor gap around 1980, MA50 around 1940-50,  trendline around 1910-20 and a major gap around 1870. 

Chart 2 presents the key bullish and bearish tracking scenarios for the current upswing.