What’s inside:
- The S&P 500 moves higher, albeit in sluggish fashion
- Noted 2150 level overcome, brings top-side trend-line into focus
- Overall, appetite for stocks is supportive, for now
The S&P 500 continues its sluggish ways, unable to gain significant traction on either side of the tape. In Friday’s post we had this to say, “A clean break above 2150 will put ball in the bulls’ court, bringing the trend-line off the 9/7 high into focus..." Yesterday brought a move over 2150 on a closing daily basis. While it wasn’t the most convincing move, we will operate off the region in the mid-2140s to 2150 as support now that it has been overcome.
In the short-run, maintaining 2145/50 will bring the trend-line off the 9/7 swing high into focus as the next line of resistance (~2160). Beyond there, we will look to several inflection points along the trend-line as resistance – 2170, 2175, 2179, and 2188.
If the market is incapable of holding onto the 2145/50 zone, it’s not far below that the trend-line off the 10/13 swing low will come into play as support around 2140. A break of this trend-line will put pressure again on the daily trend-line off the Feb 11 low; bringing into focus 2130, 2124, and the important daily swing low at 2115.
S&P 500: Hourly
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At this time risk sentiment is generally supportive for higher prices, with the Nasdaq 100 reaching new record highs yesterday, while globally the Nikkei moves to 6-month highs and the DAX trades to new yearly highs. But these markets moving to new heights also highlights the laggard status the S&P 500 maintains and a potential fracturing in broad market strength. If risk appetite were to sour, look for the S&P to be one of the first to take a hit, and given its broad nature act as a potential sign of bigger problems ahead. However, for now, the market has support as it tight-ropes the Feb 11 trend-line and risk sentiment continues to be modestly positive, so the path of least resistance, as sluggish as it may be, is up at the moment. (Keep an eye on how the market reacts at the top-side trend-line should the S&P soon approach.)
S&P 500: Daily
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---Written by Paul Robinson, Market Analyst
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