The cash SP500 sold off into the lower support zone (blue box on the chart) on Tuesday and then reversed higher to close above the medium (blue) moving average yesterday. To signal a continuation of this move higher it would be ideal to see that break above the moving average confirmed today. If it is, the next upside event to watch for will be a close above the short (red) moving average.
There is resistance (in part due to the short moving average) right above the market from 1341-43 this morning and a TD sell setup was completed on the hourly chart yesterday. If this can't stall the price action this morning then I would expect a strong upward day.
Bottom Line: The allocation mix meter remains at +100%. I am expecting to see new highs before the April low is violated.
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