Snp 500 has made a good recovery after its fall from 1200 to 1000. But the recovery now faces resistance at 1140 to 1150. 1140 is an area where potential double top could form; it is also the 61% retracement of the whole fall from 1220 to 1000. There is a negative divergence on the MACD which can things interesting.
Traders have to watch 1140 on the upside which will be a strong resistance; we should also remember the negative divergence in MACD in snp500 and the positive divergence on MACD in dollar index. On the down side traders should watch 1110-1090 levels below which the index can slip to 1040 again.
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