Last week the S&P finally broke through the 38% Fibonacci, which was resistance for the past month. Now the next major resistance traders/investors will be watching is the 20 month moving average. As seen in the chart above, the yellow line is the 20 month moving average. When the S&P index is above the 20 month, we are in a bull market. When the S&P is below the 20 month, we are in a bear market, as shown over the past 12 years, in the above chart. We currently are still below the 20 month!click on the chart for a larger view
