SPX Daily Chart - 1 September 2011

     The cash SP500 reached the medium (blue) moving average and we are now seeing a reaction to that level. Without a signal in the technical indicators my only conclusion is that we will only see a consolidation or pullback to the short (red) moving average here before we reach for an even higher target.
     Those higher targets include: 1245-1247 fibonacci and Trend Factor targets, the long (green) moving average and TDST resistance at 1332.
      Bottom Line:  I believe a counter-trend rally is underway from the August lows. My mechanical allocation mix meter has risen to +50% - the bullish potential over the near term should be respected.