Market Road Map

A good start for the bulls today as the rally is still holding (3rd time indeed was the charm) but we have tons of resistance coming right up — ideally we base near the top of the range and then break-out.      Red line is resistance and the hard zone is  1146-1153 on the $ES_F.

 Note how this re-test is much smoother than the first — less wide as bulls trying to hold the fort.    If we can close over the red-line then we could get some continuation to the up-side.   Expect backing and filling around these levels.    And for the bears — if we go through dotted red trend-line and most likely we’ll go back to test 1077 $ES_F

Bulls doing good job keeping bonds and gold down today but a pop in the trannies ($IYT), which are lagging today, would also give the bulls some more confidence.    The animal spirits are there — the missing piece is bank stabilization.  If financials can get their act together we could be in for a decent counter-trend rally up.

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