The SPY gapped up to the 199-200 resistance area which was mentioned yesterday as a likely stopping point for the recent short-term rally. Should the 200 level clearly get taken out, the SPY still has major resistance to contend with around the 203-204 area. $NDX also gapped up to the 4340 resistance level mentioned yesterday where a reversal is likely as well.
The next few days could determine the next major direction in the U.S. equity markets. Should stocks close on Friday above current levels, the long-term trend as defined by the 43/17 ema pair will remain bullish while any close this week below current levels will give us the first sell signal on that moving average pair since the 2011 correction/bear market (when all U.S. stock indices fell over 10% with some exceeding the 20% bear market threshold).