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Do Charts Show Bullish Signs for the S&P 500?

As the S&P 500closed in the red for 2011, one “Fast Money” analyst saw bullish signs in the charts.

Jeff Weiss, chief technical analyst at Tejas Security Group, said Wednesday that charting weekly closings showed trend line support for the index along with positive momentum.

Recent weekly closes in the 1,210-1,220 level provided primary support, while closes in the 1,160-1,170 range provided a second support.

“This gives bulls the edge, even with today’s decline,” he said.

The S&P fell 1.25 percent to close at $1,249.64.

Weiss said he didn’t put much weight in the S&P 500 dropping below its 200-day moving average.

“Stocks respond differently to various moving averages,” he said.

Looking at the Russell 2000 Index, Weiss pointed out weekly closes hovering around 755 to 760.

“What we need in the Russell to get the secondary names to move better to the upside would be back-to-back weekly closings in the mid-760s area, and then I think you’ll see the Russell 2000 start to perform better,” he said.

Meanwhile, weekly activity in GLD, a gold ETF, was below its one-week averages. But Weiss said he is looking at the weekly closes for a signal on where prices are headed.

“Back-to-back daily closes at 150, to me, would probably be a warning on the GLD, which has to do some repair work,” he said.

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Trader disclosure: On Dec. 28, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Kelly is long KRE; Kelly is long IWM; Kelly is long US T-bonds; Kelly is short the Yen; Kelly is short the Swiss Franc; Kelly is short UBS; Kelly is short CS; Weiss is long QCOM; Weiss is long GM; Weiss is long WLP; Weiss is long AAPL calls; Karabell owns shares of APPLE (AAPL); Karabell owns shares of CATERPILLAR (CAT); Najarian is long AAPL; Najarian is long C; Najarian is long INTC; Najarian is long MOS; Najarian is long YHOO; Najarian is long WFC;

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