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On Wednesday, the S&P 500 rallied by less than 0.1% but that was still enough to post its its fourth straight gain. Breadth was positive by 5:4 and up volume was better than down volume by a 4:3 margin. Total volume fell by 7% and remains below its 21-day ma. The daily Coppock Curve is positive for 20 of the 24 S&P industry groups.
The bottom line is that Wednesday was essentially a non event. As a result, we are watching both the momentum background, which is beginning to deteriorate, and the uptrend line from the February 5 low, which is crossing through the 1102 area. A confirmed reversal in momentum, coupled with a breach of the trend line, would do much to confirm that a short term top is in place and that the intermediate pressures are reasserting themselves. The implications would be for at least a test of 1044.
Nearby support is at 1112-1105 then 1086 and the 1078-1075 breakout point. We still regard 1029-1020 as tactical support but, if the S&P rallies directly through 1150, we will have to consider raising tactical support to the recent 1044 low.
As for resistance, our focus is on the 1131-1150 range.
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