Really not much to report today. Yesterday’s action was clearly bullish with the markets putting in a solid trend day, closing near the highs and giving back very little gains following the intraday 1-minute rising wedge breakdowns. The SPX managed to close right at, or actually just a hair above the upper end of it’s key resistance zone and pivot point around the 1440 area but has been unable to build on those gains so far today (which really isn’t surprising considering that the markets may need to consolidate to work off some of the overbought conditions).
The COMPQ also managed to close just above the key 3030-3040 resistance zone and like the SPX, remains just above that level, but also by a very thin margin. AAPL, although it had a decent day yesterday, continues to lag the broad markets in recent weeks & months and still remains perched just above critical support. All in all, yesterday’s action did take a bite out of the longer-term bearish case and as long as the markets remain above these former resistance, now support zones, the near-term and intermediate term uptrends are intact. However, as the chain of recent 60 minute SPY charts above illustrates, yesterday’s move in the SPY/SPX stopped cold at the back-test of the recently broken bearish rising wedge and R2 resistance level and continues to struggle with that level today. A solid move & close above yesterday’s highs would obviously be bullish and likely lead to additional upside while any decent move lower, in particular a move that takes out yesterday’s lows, would be very bearish and likely open the door to the next wave of selling. Finally, for those heavily positioned in either direction, be aware that we several potentially market moving economic releases due out tomorrow & Friday.