Tug Of War
Early morning buying pushed S&Ps up to 1347, which was a critical area for this market.
Sellers then took over — both Locals and institutions — causing a spike down to our lows, which were made at 1333. After that, we spiked up and made a high of 1357.
We are basically sitting in a range between 1347 and 1352. This is a critical area.
Given the volatility of the morning trade, for this market to continue in an upward mode, it must stay above 1352. The next important area will be 1357, and then a true breakout to the upside would occur if we could get above 1362. We have a cluster of resistance between 1362 and 1366.
The market has failed there four times in the last three days. If we can’t stay above 1352, look for the market to retrace down to the opening range and possibly the lows.