We asked last week if the S&P500 (our proxy for risk markets) was capable of clearing the “red zone”, the zone of resistance between 1175-1195, which included the 50-day moving average. The market’s answer? Like a hot knife through butter!
Interestingly, the S&P500 closed at its high of the day at? 1194.91! Not a sold out crowd today as the volume was super light. Nevertheless, impressive. The bears need to take a goal line stance right here and push back the momentum or the next stop is S&P500 1230, the top of the recent trading range which began with the August collapse.
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