1016 or 1121 on the S&P?

The S&P 500 closed today above the psychologically significant 1,000 level, the first time it has closed above 1,000 since just after Lehman failed in October 2008.  Today’s market action surprised a number of people who were expecting at least a day’s reprieve from last weeks run up for month’s end.

It’s anyone’s guess where this market will go, but for those who beleive in technicals, I have pasted a Fibbonacci retracement from the market high in 2007 to this morning, before the market broke 1,000.

S&P 500 Retracement 2007-Present

S&P 500 Retracement 2007-Present

The retracement shows significant resistance ahead at the 38.2% level which is equal to 1,016 on the S&P.  If that fails to turn this market back down, 1,121 (a 50% retracement) will likely mark the end of this bear market rally.  Enjoy it while you can, and don’t forget to take some profits!

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