s&p Levels

The S&P 500’s minor trend is still moving up within the confines of an up sloping trend channel. Only a close below 835 would violate the lower channel line and put a corrective wave on the table. That said until such an event occurs we have to respect the trend is still up and its upper target of 935 is still the projected forecast.

For the time being dips are still being bought, which suggests liquidity is still ample. We would continue holding long bias with protective trailing stops. Volume trends, while moderating, remain strong enough to maintain upward prices given selling resistance is minimal after six months of continuous distribution prior to this advance.

The combination of deeply oversold conditions resolving themselves with a back drop of strong liquidity continues to be the overriding market theme still. We believe monitoring sentiment will be the best way to determine when the advance may stall and at present sentiment is a neutral factor not a negative one.



posted by Peter Greene