After some stalling at 1134 here in the first 50 minutes, we see the S&P 500 now poking its nose over the 200 day moving average
at 1136. This is the first visit over that level since the second day of August. Those who have been waiting for that clearance of the 200 day (computers and human) probably will jump in now. Likewise, bears who have been shorting against this level, tend to throw in the towel - which is why sometimes we see reversals once both these moves happen.
As always the close is more important than the intraday action but seems difficult to think bears will take a major stand ahead of a happy meeting Sunday in Europe. A close above 1240 or so would be a positive.
Next up for bulls to attack are those lows of June, they look roughly at 1265 to 1270.
If you are keeping track at home, we are now up nearly 15% in the S&P 500 from two weeks ago Tuesday when I believe it was a rumor that China was willing to buy European debt created a huge reversal at 3 PM that day (that was the day the market rallied some 4% in an hour). This has been one of the greatest moves of the rally since March 2009 in terms of ferocity in a short duration.
As always the close is more important than the intraday action but seems difficult to think bears will take a major stand ahead of a happy meeting Sunday in Europe. A close above 1240 or so would be a positive.
Next up for bulls to attack are those lows of June, they look roughly at 1265 to 1270.
If you are keeping track at home, we are now up nearly 15% in the S&P 500 from two weeks ago Tuesday when I believe it was a rumor that China was willing to buy European debt created a huge reversal at 3 PM that day (that was the day the market rallied some 4% in an hour). This has been one of the greatest moves of the rally since March 2009 in terms of ferocity in a short duration.
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