The S&P has cleared its MA200 resistance to the upside. It now heads towards its 2,840 glass ceiling (see chart below). A break of 2,840 would put us in straight view of the historical 2,940. All the while, volatility remains low and near meaningful support levels. This week is starting, and will likely end, in an interesting fashion. Keep longs. Keep tight stops. Get ready to hedge when we hit resistance (I buy VXXB).
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We rebounded exactly off the resistance at 2,820 and turned back. Today it looks so far that the index will be rejected on its resistance. Let's see if we manage to break it...
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A close today above the glass ceiling would mean a high probability of the market continuing its upwards directional trajectory. A close below the glass ceiling would increase the probability of a pullback. Make your bets!