Stochastics, Fibonacci levels, trends, and support and resistance
point to a small, short term correction that could put the S&P
back below 1400. We might see a few more up days as a few more investors try to chase what's left of this extended up trend, but soon thereafter look for a change in the direction of the market. We have yet to see a real pull-back since the June lows and are therefore due for one. Look for support at around 1418 (late march highs) and then again at 1400 - 1390 (both a psychological support level
and a fib support level
). We should see some resistance soon as we are approaching the upper trend line
and the 1.618 fib level. Also, there is not much behind this market that is substantiating this long run up. Look for the market to run out of steam.