The SPY option resistance held for today. Breadth was slightly negative. New highs dropped down to 114. New lows were up a bit to 28. A little bit of profit taking today. I should note that breaking out above a trend channel like this and falling back in usually leads to a trip outside the other channel line. Sometimes it ends the trend completely. On a closing basis it would be better to stay above that upper channel line. They will sometimes slide along just above the line for a while.
The futures opened up several points, but were stymied right away. They are still above the upper channel line.
The green count turned down a little bit. It has not reached overbought yet.
The upper channel line and SPY options held the market in check. It remains to be seen if the resistance is significant enough to cause a pullback. Even if the market is going higher it would not be unusual to go back and test the Jan. high (2872) from above before taking off again. I must mention that history has quite a few false break outs in Aug. and early Sept. I don't think it is safe to say this break out is going to succeed yet.
Bob
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