New Start. Decision Point. December 6, 2010.

The market faces significant resistance, the SPX (Standard and Poor's 500) has to overcome the 1,228 to stand at bull terriotory.

For Bears the break level is 1,173. (Today looks very far).

As soon as the SPX is completing a technical formation, which have generally a bullish resolution: Cup with Handle.

- It is confirmed by breaking the 1.228 points, preferably with volume.

- If it works, the technical objective is 1,335 (+9%) and 1,443 if we are optimistic -most popular target-. (I favor the first target).

For the IPC (Indice de Precios y Cotizaciones, Quotes and Price Index, mexico's principal index) the implications are:

- Mexico is cataloged in emerging countries group (China and Brazil are currently the world's economic engine.) The Mexico is overweight to international investors involved in emerging markets.

- Then, Mexico has shown great strength and a very bull mood. Very resistant to corrections and very optimistic about the up movements.

So, being conservative and considering the momentum that would give the SPX if you reach his target:

- The CPI would have a target of 39.500 (+5.6%)

Note, these are technical objectives, does not mean to be achieved this year. However, since December 13 the picture is very bull.

IPC Sandard and Poors Dow Jones