Finding support on the close Monday, the cash S&P500 put in a strong showing Tuesday forming an uptrending bar. Strength was confirmed by both the higher volume and the technicals – note the RSI (top pane of today’s chart) holding the 40 level.As it appears that the pullback from the July 23 high is over for now we should see the bulls attempt another assault on the 1289-1293 resistance area; which I think will be successful. Watch the medium moving average (blue line) at 1280 as it may provide temporary resistance.
For those bold enough (not me) to have gone long against the higher level trend the Wilder stop is now just at 1234.37, Monday’s low. Support lies here in the 1229-1236 area. The next lower level of support is at 1211-1214.
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