On March 11 this year the S&P 500 index moved above 1,550. The index remained above 1,550 for most of March. This breakout is very important because it is a move above the long term double top pattern seen on a monthly chart of the index. The 1,550 resistance level is near the peak high of the S&P index in October 2007. It was also near the peak high in March 2000. This suggests 1,550 is a very significant resistance level.
Traders watch carefully for the development of any chart pattern which suggests a rapid retreat from 1,550. Rapid retreats happened in 2000 and 2007. There is a danger that the S&P index will temporarily move above 1,550 and then develop a retreat. However the weekly and the daily chart of the S&P Index do not show any trend reversal patterns. This is a bullish environment that suggests the S&P uptrend is strong.
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The uptrend behavior also does not include any chart patterns which help to set upside targets. Analysis of the long term pattern of support and resistance shows the S&P index moves in wide trading bands. Each of these bands is around 140 index points wide. The recent rally is a rebound rally from a support/resistance level at 1,410. The width of the trading bands provides the next upside target for this uptrend. It is near 1,550 and this is also the long term resistance level.