The Stock Market remains in a confirmed short term uptrend. Breadth and momentum are ok, but
volume has turned light again. The SPX is at enough of a premium to the 25 day m/a that you
should not be surprised if the market is clipped a little around the edges by the real short termers.
There is a mild / moderate but by no means serious overbought to contend with now.
The next step for the advance is to get through the 1400 - 1430 area on the SPX. Resistance over
the next couple of weeks could be a very important issue since it would raise the possibility of
a bearish secondary top in the wake of the original cyclical top of SPX 1419 set on 4/2/12.
However, since resistance at or mildly above 1400 would be a more or less natural development,
long side players may have to sweat it out for the short run, keeping an eye on breadth which
has been a price level leader in the current rally.
SPX Daily Chart
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