S&P testing recent support

There are a couple of different ways to read the S&P chart as I see it.  They look a little different to me depending whether I use the ES (Futures) or SPY (ETF) chart.

On the Futures chart, I use the intra-day low from 10/4/11 as my starting point and get a pretty clear rising (bearish) wedge, from which we broke down on 4/5/12.  We then consolidated in a range.  Last week it broke out to the upside of that range, and are now testing the old channel resistance as support.

On the SPY chart, I’m less inclined to use the opening price on 10/4, preferring instead to use the closing price from 10/3 (I’m not sure why) which makes for a much wider wedge.  After popping briefly to the downside of support on 4/23-24, SPY rallied to close the week within the trendline and has stayed there since.

So, despite taking a couple different charting tacts, it looks like the 1390ish area is important support for the S&P.  At least that’s how I see it.

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