The fourth trading week of the year saw bears kick the index back down to the critical level at 6,000 a few days after price attempted to hit 6,200.
We are now seeing an ascending trendline form and it intersects the 6,000 level. Bulls must defend this area from serious bear attacks and they should stay ultra-defensive in the next few weeks.
With price now back close to 6,000, bulls and bears have somewhat equal opportunity to set the pace for February.
Do you think there is a chance that the index will just consolidate throughout this month?
Key areas to watch:
Resistance: 6,200-6,300, 6,500
Support: 6,000, 5,800
Reference chart: http://www.tradingphoenix.net/2013/12/30/psei-the-year-ahead/