The failed low off of the 2615 to 2587 (.618 of recent structure) is an important clue when it comes to the bigger picture possibilities of this market. That broader higher low structure implies that a breakout of this overall consolidation is more likely which sets the stage for a summer rally.
The problem is price is now in a short term area that makes it vulnerable to selling. The 2710 to 2751 is the .618 resistance relative to the recent structure and has proven to be an attractive level to sell previously. The thing to consider this time is the fact that higher lows often lead to higher highs, and this market is coming from a higher low.
So how is this information helpful? If you are trading the , longs are risky at these levels, especially if you are looking for swing trades. If you are using this market to time your stock portfolio, there isn't much to do here. There is no reason to add any longs, and no reason to take defensive measures against a more significant pull back.
This market is heavily driven by sentiment that comes from and economic data. If any of those variables come in less stellar than expected, it can take this market back toward the 2650s which is nothing more than range bound price action.
In summary, this market is strong overall and the current ahead is really more for day traders and scalpers to be aware of as far as the short term probabilities go. Otherwise, any retrace in this market can be a good gauge to enter good stocks for the longer time horizon. At S.C. this is how we use this market for portfolio strategies where we utilize carefully selected stocks and options.