After reaching our target at about 1337.5 (marked on the chart in brown) the market has hesitated. However, hesitation is not a reversal. The close was well above the low and further gains can not be ruled out. The next target area is between 1341.59 and 1345.50 (two horizontal blue lines on the chart). Just above the market is the current TD Supply Line (downsloping dashed red line). A break above that line today would be bullish.
Call me stubborn but I still think the bulls must prove their case here; particularly since a bearish divergence between price and the RSI was produced yesterday.
Bottom Line: The bulls are once again attempting to break above the February 18 high. But, until we get a qualified break of 1341.59, the daily chart remains in bearish mode (which it has since Feb.22). My allocation mix remains at +50%.
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