I feel that we will get some follow through on Friday’s move.  Levels to watch begin with the swing low @8143 from 10/27, then the swing high @8504 from 11/19, swing high @ 8923 from 11/14 and finally the swing high @ 9653 from 11/4.  Also, it would be wise to see how the INDU reacts as it closes in on the top of the descending channel trendline.  The move Friday was not quite a Bullish engulfing pattern, but it was close. It occured on significant volume.  However, longer term, I feel that we could go back down to retest recent lows @ 7200-7400.  If those levels are broken, we could see 6400-6700. 

Similar to my comments on the INDU, I feel that we could get some follow through from Friday’s move.  The SPX formed a bullish Harami on significant volume.  Analyze how the index reacts at the following levels to give you clues on the sustainability of any move that may occur.  First the swing low @ 818 from 11/13, the swing low @ 845 from 10/28, the swing low @ 875 from 10/28. the swing high @ 917 from 11/14 and finally the swing high @ 1007 from 11/14.  Again, pay special attention to how the index reacts at the top of the descending channel.  Old support becomes new resistance. 

Look for tests at 1428, 1493, 1533, 1542 and 1786 on a short term move up.  Remember that old support becomes new resistance.

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