SPX Monthly Chart Update

The chart covers 1995 -2009. I drew a horizontal
white line at last month's high so we could look back
in time and see the importance of that price zone.
Let's call it 955-960.
In 1997 it was resistance for almost 6 months
before the market was able to break through.
A retest occurred in 1998 for three months.
Finding support the market was then able to
move higher. There was another test of the zone in 2001
with the market first finding support and then breaking
through to the down side finally a year later in 2002.
Next in 2003, the market bottomed,
broke through that resistance level, tested it
as support for three months, then launched the
move to the 2007 high. We can then see
the level tested and broken in the crash of late
2008. Then with our latest rally last month we tested the zone
again and were turned back. Note the bearish
Evening Star Candlestick pattern. Note also
that we still do not have a bullish crossover
in MACD. I'm not Gonzo bearish, but since
we had a bearish MACD crossover on the weekly
chart, I think it's prudent to keep long positions
small and have more cash available until the
longer term picture improves.