It keeps going and going and going, that market that is not the pink bunny. But now the market should meet some resistance. Not just a daily resistance but longer-term resistance levels.
The first longer-term chart is the weekly.
1053 is the 89 wk ema, this should provide some resistance. Also look at the MACD histogram divergence and the Stoch is overbought, plus there is a decrease in volume the last two weeks.
The other longer-time frame resistance is the 20 day EMA on the monthly chart.
The 20 EMA provided support during the last bull market, then in 2008 when the market topped it provided resistance twice in July and August of 08. This moving average should may resistance again.
SPX on the daily the 1050-1050 is the upper part of the rising wedge.
Also don't forget the history chart:
Oil is looking to hit resistance again at $70 a barrel. If oil gets rejected at this level it could signal another move down in oil. It is also meeting a short-term down trendline. Move down in oil could help the market move down.
So far today pre-market 9:00EST:Oil up(bullish for stocks)
DX up(should be bearish for stocks)
/ES up(green open)
So what to watch for:Can oil move past $70.
Can SPX move above 1054 (may be a good entry short, clean stop above 1055)
Can the dollar stay above 70.
If the dollar can stay above 70 and oil moves down, it may show signs of a weakening market. After the last run up, there was a lot of chatter of people "shorting" and "this is the top talk" so far I haven't seen or heard much of that. Seems people are hesitant to short or now bullish and looking for a pullback.
