________________________
This morning’s move higher has been fairly soundly faded into midday, as you can see below on the short-term timeframe. We are close to last Friday’s lows, and I think the 1309 level on the S&P 500 is a good reference point to watch intraday. The issue is whether individual breakout plays will continue to be permitted to work, or whether the market as a whole needs to take a breather. While bulls might be somewhat complacent in assuming any pullback here is bullish, I am still reticent to join the growing chorus of traders looking for a major market top here, in large part because there is much work for the bears to do to reverse the progress made by bulls over the past few weeks. Moreover, many charts could still use a few days of sideways action in order to set up secondary low-risk entry points for swing traders. For now, though, the market looks to be taking a well-deserved rest and continues to deserve the benefit of the doubt until proven otherwise.
________________________
