S&P cleared key technical resistance, breaking above the trend channel moving average. Nevertheless, it will be important to monitor the rally and retreat behaviors over the next few days to determine whether breakouts are decisive. We’d turn particular bullish if the S&P closes above 2630 on a weekly basis
S&P is at key technical juncture. Current rally is testing formidable resistance at the 2620 zone. This level is too big and too important to fall quickly so it should not be surprising to see some backings and fillings in the coming days.
Tuesday’s impressive rally had helped putting the bulls back onto the driver side of the market. However, given the looming resistance near S&P’s 2618-2630, there is no big commitment to accumulate stocks aggressively at this point. What this means is that as the S&P inches into the area of key overhead resistance, aggressive sellers will most likely dips in their toes to see how the market reacts. So, we’d be cautious against taking large position at this stage
recent trading actions leaving the S&P in what looks to us like an orderly high level consolidation of the December recovery rally. The fact that S&P managed to hold on to most of its gains was pretty encouraging. Over the next few days, it will be important to monitor the rally and retreat behaviors as the 2600-2633 zone is tested as resistance. We’d turn particular bullish if S&P hurdle and sustain above 2633