The dangers of shorting with a rising 200 day moving average on the major indices was once again seen today, with the market sharply reversing higher after initially fading lower. We had observed the 30-minute SPY yesterday as illustrating the resistance associated after the 07/06 breakdown. Updating that chart today, the key for bulls is now holding over this achieved breakout point. On the S&P 500 cash index, I am looking for 1357/8 to turn into support as another step up the ladder for bulls, after conquering 1335 late last week. However, 1373/4 still looms above as prior resistance from earlier this month.
The market is still a mixed bag overall, but the continued resilience by the dip-buyers sure is sending some good vibrations. Let’s see if it holds.