SNP 500

The SNP index has paused at 1125 which is the 50% retracement of the recent fall; it is also the 100 day moving average. The rise, till now has been accompanied by a negative divergence on the MACD indicator. Going forward the level to watch on the down side is 1060, a break of which will result in the recent lows of 1000 being retested. On the up side traders need to watch 1125 and then 1150, these two are strong resistances which if taken out by the index will add to the bullish momentum and then the index can rally towards the important high of 1200. Traders should remember that the dollar index is showing some signs of strength along with a positive divergence on the MACD indicator. If the dollar index rallies then the likely hood of SNP breaking past 1060 is more than breaking past 1125.