S&P Primary CycleThe end of the 2010 Primary cycle, and we begin a new Primary cycle for 2011.
Trading above the 2010 highs @ 1200 should continue to push up towards the 2011 highs @ 1300
a number of resistance levels in 2011 :- 1300 & then 1331.
The Primary cycle is a long time, therefore we continue to focus on the lesser timeframes (Monthly and Weekly), whilst looking for trading set-ups using the 5-day range and the Weekly levels.
We also need to be aware of any 'flash crashes' that may occur in 2011....
with the key support level @ 1173 (2011 50%)
S&P monthly and WeeklyMy view was for the S&P to continue higher in the first Quarter for 2011, with the most robust setting using the 3 week lows as support (late December or early January)
In the short-term, the trend remains up, as long as price remains above the Weekly level @ 1253.50
If below, there is still the possibility that price moves down and finds support at those 3-week lows @ 1232-1234
My preferred pattern would be price coming down into those lows first before the January highs have been reached @ 1280
If the January highs @ 1280 are reached first without moving down into the Weekly lows, then the support levels will differ later in the January, as they won't be as valid.
