It was another strong up trending day in the cash S&P500 market. Yesterday I stated that “If the bullish camp is to regain control of this market it will then be imperative for them to move price back above resistance … on the weekly chart that is at about 1066-1071. The daily chart shows a resistance zone from 1052-1056.” Yesterday’s high was at 1065.55 (right in the weekly resistance zone) and the close 1054.72 (right in the daily chart zone). Now we will see whether the bulls can punch through.The supply line (down sloping dashed red line) was broken and qualified yesterday. To confirm that break today we must open and close above 1053.82 and break yesterday’s high. If we do that the upside price target is 1098.23 - a new high.
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. Let’s see what today brings. The point where I would say the bull run from March is in trouble is currently at 978.51.
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