The market has managed to to breakout of this year's down-trend (lower-highs/lower lows), and in doing so, it has also eclipsed several key areas of resistance. It has managed to breakout above all of its major daily moving averages (20, 50, 100 and 200-Day Moving Averages). The three BLUE arrows in the chart below mark important short-term price levels we're watching. The top BLUE arrow will provide significant resistance and the two lower BLUE arrows are key areas of support the index needs to hold to feel confident in this breakout run, which is a bit extended.
- The market appears to be gaining strength in it's breakout.
- The S&P 500 sliced through its major areas of resistance like a knife through warm butter.
- Several other indicators we monitor are supporting this bullish run.
- Watching lower levels of support for a hold, which can be built upon.
- The market has moved far and fast out of its downtrend, so it is poised for a healthy (good) pullback - and assuming its various support levels hold, they would provide good entry points for investors who are sitting on too much cash.
S&P 500 Daily Chart