Hesitating at Resistance ... Bulls Poised to Try Again

It was a day of hesitation as the cash S&P500 formed an “inside” price bar on the daily chart. This price action nullified the breakout of the supply line mentioned yesterday and has established a new one (down sloping dashed red line). For today we will have a qualified breakout only with an opening price of 1056.93 or greater.

Especially with the way the futures look this morning, it is certainly still possible for the bullish camp to regain control of this market. It is still imperative for them to move price back above resistance … on the weekly chart that is at about 1066-1072. As discussed above we are on the verge of breaking out from the resistance zone on the daily chart.

Bottom Line: As you know I am in the bear camp over the near-term and I have stated that it will take a move above the September 29 high of 1069.62 to get me to even consider turning bullish. I may have to begin that consideration quite soon! Let’s see what today brings.