The cash SP500 market opened higher yesterday, immediately confirming Wednesday's close above the medium (blue) moving average. A pullback then occurred when the TD Supply line was reached, but the bulls regained their legs and managed to close the market above the short (red) moving average. To signal a continuation of this move higher it would be ideal to see that close above the short moving average confirmed today.
Perhaps the more immediate problem for the bulls is the Supply Line sitting at 1344.58. The only way to get a qualified break today is to open above it. A failure to do so, or a failure to qualify yesterday's close above the short moving average leaves the market vulnerable to the potential negative reversal forming in the Composite Index (top pane). If both price and the index were to turn down today it would mean a likely return back into the blue support box.
Finally, keep in mind that the market will be fighting over the 1337.38 number today. See the last Weekly chart update for the reason.
Bottom Line: The allocation mix meter remains at +100%. I am still expecting to see new highs before the April low is violated.
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