Market pausing

The expected pause in the markets seems to have started.
This has been a very nice rally since mid December, so some hesitation is very normal now we approach major resistance levels.

Let’s have a look at the current chart for S&P 500 (click for larger image):

Our lunar Red Period has started, so I am looking for some sideways to down action in the coming weeks.
As long as the S&P remains above 1260 the up trend remains in place. So any dips can be bought with a stop-loss just below 1260.
The setup looks good for a further push upwards in February.

Good luck, Danny