Market Needs A Retest

Rallies like the current one we’re having, can quickly change perception in the market.  Last week’s doom and gloom has been replaced with bottom callers again.  Time to be cautious.  The 50dma sits just above at 806 for the SPX, and 1473 for the Nasdaq.  And let’s not forget, there’s a ton of inventory between 800+ to move through before heading higher.  Bottoms and tops can be volatile.  Expect a retest below soon, and possibly lower.  Tomorrow’s the seventh day to the upside, which can lead to reversals.

The 200ma sits directly above the SPX here on the 60-minute chart.

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The SPX is attempting to move through a long-term trendline from a pivot high in September.  I can’t see it going straight through it without a pullback first.

spx-lomg-term-september-trendline

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