CFDsPros.com S&P 500 outlook for Feb 22-26

[CfdPros]

Stock Market (S&P 500) Outlook: Feb 22-26

Strong shortened trading week we saw, as the S&P 500 managed to break above
the 1104 level and closed out the week above it at about 1109. 1104 was the
price point I mentioned in previous posts as being a pivotal point for the
market. Exceeding that point puts the market in a "no man's land" there is a
conflict between short and longer term signals.

The market has pulled back to near the middle of a recent high and a recent
low, both which sit at the opposite ends of what has been a period of
expanded volatility. Which path the market will take from here becomes
somewhat unclear when looking at multiple time frames.

Short-term there is a strong trend higher starting from early February, but
if we go back to early January it appears we are in correction. Day traders
are likely to like this area as the intra-day volatility has been quite
tradable.

For the week of Feb 22-26 the outlook is neutral at this point. Resistance
and targets on the up side are 1115 and 1132. Beyond this is the high at
1150. The break above 1104 does indicate a move to 1120, and a move through
1120 indicates a move to 1132. Failure to reach the levels is bearish.

A close below 1104 is the first indication of trouble once again, but is not
a clear sign. 1080 should now act as strong support, and if it does not
provide support and prices fall through support comes in at 1060, 1055 and
1044. 1080 is also where our short-term trend line will approximately be
broken if prices retreat this week.

Weekly average range is just over 31 points, so some of these levels
mentioned are out of reach for the market this week, but are important for
the larger picture.

Cory Mitchell, CMT
VantagePointTrading.com

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Analysis written by Cory Mitchell for CFDsPros.com

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