The S&P 500’s intraday low this week is 1,173. So far, the closing low this week is 1,180. Notice, at least for now, the market has held above the key levels we outlined on November 29th. We will post an analysis sometime in the next 24 hours which shows 1,175, 1,200, and 1,219 are also important milestones for the S&P 500.
The U.S. Dollar Index is also back below the blue band between 80.89 and 83.06 (see 2nd chart in this post). This is another potentially bullish development for risk assets. A weekly close below 80.89 is really what we want to see – so we still have some hurdles with the greenback.
As of 12:20 pm ET, stock market breadth is excellent. Volume is also tracking higher on both the NYSE and NASDAQ relative to yesterday, which is another good sign. If these trends hold into the close, it would be a short-term win for the bulls.
The fact that we have held above 1,175 on the S&P 500 is a good sign – even better if we continue to hold above it. A close above 1,200 is another step in the right direction. A close above 1,219, especially on a weekly basis, would increase the odds the recent corrective/consolidation period may be over for the short-term. As long as we stay below 1,219, the bears still have a crack to slip through.