Yes,since my last post the market moved up to 1228 and then fall back.Luckily I was quick to cover my shorts, and indeed I am long now around these levels with keeping an eye on critical support around 1130-1150.And ultimately around 1080(explained below).
1228 is noted as the 61.8 fibonnaci retracement of the move from 2007 high to 2009 low.
I am a follower of the MA's. 200 week Ma (yellow line in the chart below) was the resistance in April, and this time 200 week MA is broken to the upside and provided support for the down moves we experienced the last 10 days.
See the chart below:
You can also see the 20 week MA crossed the 50 week MA to the upside again, which means it was a false alarm as I suspected. This strengthens the bullish view.
Just keep in mind the 80 week MA (blue line),which I think provides the support for the bull market that is intact since MArch 2009. It sits around 1080.
The daily chart does not tell much except maybe, the down move found support around 50 day MA .
Overall, there is still uncertainty about European Sovereign debt issues but apparently the market still wants to go up. Portugal looks like the next Ireland/Greece, but the it seems that the market will contain it as well. Nevertheless, I will keep very cautious of my long positions in this dangerous market.