SPX Update 3/17/09
Regarding the SPX, the recent rally has almost reached a key resistance level just shy of 800. This resistance area should be part of a downward channel, thus a retest of lows or even further low, which is more likely. While there has been some promising news on the economic front and some earnings calls, there is still a lot of "shoe dropping" to be seen. For one thing, there are many BKs within the commercial REITs space and others.

To be safe, a stop/loss level of 800 should be considered, but I do not think there will be a rally much further than that. Some sideways action beyond the 800 level, and a slight dip in the coming months would suggest a Reverse Head and Shoulders pattern having been formed.  ¶ 7:56:00 PM