Here's the latest in a series of updates from Serge Perreault, a Chartered Accountant and market technician located near Montreal, Canada. Serge anticipated the S&P 500 pullback that began in January, and he has nicely annotated the 8.1% decline and recovery in a series of weekly updates: Jan 19, Jan 24, Jan 31, Feb 5, Feb 12, Feb 19, Feb 27, Mar 6, and Mar 12.

The S&P 500 closed the week up 0.9% and remains slightly above the downtrend resistance dating from the market peak in October 2007. Serge's latest chart shows the S&P 500 in a continuing contest with sideways resistance for the index price, and with conflicting signals for the rate of change (ROC) and the relative strength index (RSI). See the A, B and C labels on the chart. For the S&P 500 price, that sideways line is around 1150. Of particular interest this week is the mixed message of two key indicators. The ROC remains above its 10-week moving average. However, the RSI is clearly in overbought territory. The aura of suspense continues.