The last two days SPX tested the high and low of Friday's bar. It acted like it was scared to get outside that day's range and stay there. There is support at 2090 and resistance at 2100. That is an unusually narrow range. I can't imagine SPX will stay here very long. The breadth ended at +60% due to strength in the small cap world. New highs increased slightly to 110.
The futures got below the 20 SMA this morning, but rebounded immediately. So far so good for the bulls. Inconclusive on whether this is a consolidation or top forming.
The green count pushed further into overbought territory. Will the bulls be able to break through 2100 anyway?
We have a narrow range at the highs. I don't think it will take too long to resolve. A close below today's low would be a warning shot to the bulls. A close above 2100 theoretically could set up a test of the all time high. Do the bulls have the gusto to make that happen?
This is a pretty interesting read from Ed Yardeni. The Message From the Flattening Yield Curve
Bob
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