Weekly Wrap

We hit 60 something this week, degrees on the temperature gauge that is and almost all the snow has melted. So far nothing has melted on the SPX yet. Al though we broke the January highs with a new high of 1153 today it did not hold as we closed just below the 1150, got some heavy resistance there for now with some support down at the 1130.  The weekly however shot right up to the 1150 without much hesitation (see those six consecutive green candles on the daily). The trend line on the weekly corresponds with the 1130 line should we retrace next week.  The monthly shows some signs of consolidating to a possible roll over but since the month is only half over we can still go either way even though the candle is currently bullish it still needs to get over that 1150 as well. I expect next week to be challenging for the market to say the least.  We have reports forth coming on Housing Starts, FED Announcements, Producer Price Index and Consumer Price Index. If that's not enough to knock your socks off it is not only expiration week but quarterly expiration to boot. I love triple witching day, don't you?  So if Mr. VIX can maintain a narrow channel between the 17 and 20 lines for the week then I would venture to say that the 1150 on the SPX shall be conquered, but if he gets way out of hand I would look to the start of that trend line on the weekly for trip back down memory lane. Remember, trade what you see and trade to trade well.   J.R.