Last update ended with:
In conclusion, the market has now rallied right up to resistance, so we could see some backing and filling to start the session today. Normally, given the momentum of yesterday's rally, we would expect to see higher prices once that completes.
And both of those things happened on Wednesday, as SPX meandered around before making a very slight new high. Thursday saw an early sell-off to get bears excited, but SPX recovered before the close. There's still nothing concrete in the charts that screams "short!" but we are still testing intermediate resistance, so anything can happen at a time like this.
SPX has created a bear option for itself -- but this is simply an option at this point.
In conclusion, bears would need to kick out yesterday's low (first potential support is near 2920 and rising) to start to open up more options. Otherwise, the main thing they have going for them is the test of resistance, which can always lead to a rejection. For that reason, bulls should be cautious here, but there's nothing definitively bearish about the charts yet. Trade safe.
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