The quick return to the highs from the drop to 1737 is telling of a market that has unfinished business at the top. We’re around 3/4 ticks off the 1851 highs and the bulls are still trying to crack the level. We’ve had 4 trading days of trying and if we don’t break it soon then we could have another look to the downside. Dips have been limited to the 1825/30 level so a break below those levels could see 1800 tested. With not a lot on the calendar,bar the Dallas Fed manufacturing survey at 15.30 gmt, we’ll see whether the buyers want to have some fun without the distraction of data.
As I write we’ve traded 1850.72 and we could have the break on. I’ve stuck a buy stop in at 1860 if we blow.
Update: 1851.34 trades and we get a new all time high from 1850.84
S&P Daily
The Dow and Nasdaq are also riding along nicely up 131 points (+0.8%) and 33 points (+0.8% respectively. With US bond yields at or just off the highs the buck is getting a shot in the arm.
