Back to the Scene

Here we are, again.

4170 up through 4200 was stiff resistance two month ago for the S&P 500 Index. And now bulls are betting on a big breakout with a slew of big tech earnings right ahead, namely NFLX tonight and TSLA tomorrow. 

You can see the potential overhead supply (resistance) yourself on the S&P daily chart, updated below. If this is truly a new bull market, which I continue to doubt, then bulls should eventually break and hold above this level for a considerable period of time. If the bear market is still on, then we either pop and quickly reverse down from here or, perhaps churn sideways before a big drop towards summer. 

Either way, the previously trapped buyers from February have now been made whole, which means we should get valuable information as to whether they want to keep pressing now that they broke even or, instead, will take those chips off the table with major earnings and then the FOMC all in the next 2-3 weeks.