There are two reasons why we could get a break above resistance this time. These conditions were not present on previous tests of this resistance level:
- Institutional trader buying detecting on the TICK for the first time since February
- EPS growth is positive for the first time since January
Institutional trader activity was detected on the TICK for the first time since February 2015. The institutional buying was detected on Friday, May 8, 2015.
EPS growth was forecast to drop by the most since 2010. After last week, the previous EPS growth for Q1 2015 has been raised to 0.1% growth. The reason the EPS growth for Q1 2015 is finally positive is that more than 70% of companies reporting beat estimates.
I talk more about this in the weekly Saturday show broadcast on YouTube: https://www.youtube.com/watch?v=zfDpgfhTeSo