• market trying to make new highs

After doing pretty much nothing and trending lower over the past month (or at least trying to), the S&P 500 is back to trying to establish a technical break though to the upside by taking out the recent highs from April. market trying to make new highs

As it stand right now, SPX is sitting on 2111 – the intraday highs is at 2111. The closing highs from April is 2102 which I don’t think much matters since we closed above that level on Thursday and meant very little come Friday. 

Now I want to see the close above 2111, and from there we have another challenge that comes up at 2116, which is the highs established back in November. Amazingly, these resistance levels are all on top of each other and is what has made trading between 2040 and 2138 such a difficult range for traders. 

While a 10-12 point move higher for SPX is typically a good day on any other day, for today, it isn’t going to mean much unless it can clear 2111 at the close. The way the market has been of late, I wouldn’t be surprised at a close at 2110 or 2111 which makes tomorrow very ambiguous. 

So here’s my thinking. A close at or below 2111 doesn’t give me a green light to add any new long positions. A close above this level and follow through tomorrow, gives me the green light to add new long positions. 

A sharp pullback tomorrow gives me the green light to start hedging my existing positions, or even possibly begin closing out some of my positions. 

Here’s what I’m looking at here:

spx hourly chart testing april highs

 

 

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