SPX Daily Chart - 12 April 2011

     The cash S&P500 found support yesterday near the medium moving average (blue line) at the 50% retracement level of the distance from the recent high to TDST Support.
     Another way to determine whether the February high was the end of a trend is to establish that an Elliott a-b-c sequence began from that point. So far all we have confirmed is the 'a' wave as shown. Today the required level to establish that a complete corrective sequence is underway is a move below the March low, although the required level will be rising over the coming days.
     Price Targets to watch: Upside is the short moving average (red); downside the long (green) moving average.
     Bottom Line: The scenario that price has failed the retest of its February high must be respected. The daily chart remains in a bearish mode with the allocation mix at a +50% reading. The chart would turn bullish with a qualified break of 1341.59.