4200 has been my key level for the ASX 200 for some time. The market beat it in after hours trade earlier this evening, and is now testing dual trend line resistance. Of note, the S&P 500 is yet to beat its early July peak, though came within less than half a point a few minutes ago, setting up a double top if (IF, big IF) that level holds.
Thursday, 19 July 2012
The following chart shows trading since early 2011, illustrating that the early July high at a touch over 1380 was a brief spike above a key resistance zone. The chart includes after hours trading, and indeed the spike to 1380 occurred after hours. The cash S&P 500 index last night broke its early July high. Such divergences often occur at or near market turns, though it would not take much for the after/all hours market to rise over 1380, erase the divergence, and open the potential for a test of the March high around 1420.