The cash S&P500 put in another strong uptrending bar on the daily chart Wednesday. We rallied straight up to the medium moving average at 1280, pulled back and then broke through that temporary resistance area during the last hour of trading.The bulls are now ready to attempt another assault on the 1289-1293 resistance area (which I think will be successful). However; I will be watching for a possible “head fake” today; that is, a failure to continue the rally. Such a consolidation might actually lead to a powerful move up tomorrow. Watch the short moving average (red line) to see if it can “contain” (not necessarily stop) any such pullback.
The Wilder stop on any open long position is now just at 1236.38, Tuesday’s low.
I will have a look at the new monthly chart tomorrow morning.
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