Another strong day registered another new high close for this S&P in its recovery upmove. Holding above the 1085 resistance/weekly down trendline will now be key if further gains are to develop this week. Near term support resides at 1102 and then the 1096/94 area where we would like to add to our positions over the longer term. Closing above the 1110 is the next step the bulls have to do to continue this up move that could extend into the 1118/20 zone ahead of the 1130 area.
The daily oscillators are finally above our critical 0 area on the macd and two other proprietary oscillators adding to the bullish technical picture early in the week
A close below 1090 would warn of a lower top and retain the overall trading range but also offer a test of the 1084/80 support area. A close back below 1080 would negate this upside scenario to open the way to the 1074/68 which we would this should ideally hold if the bulls are going to have any chance of going higher again. A more bearish close below 1060 will again open the downside into the 1051 through 1035 area and give the bears control.
Strategy- long on the close at 1087, stop 1090, target 1110/12 if profits were not taken in the 1100 zone.