The major US indices are firming up after a double bounce off of lower trend support. Markets for all kinds of assets are confirming the near term shift in sentiment, and the S&P 500 has already crossed above a significant near term hurdle at 1884, evident on the 30 minute chart.
This decisive break leaves the index room to run unimpeded back up to the next resistance at 1960. This will be a much needed opportunity to pause and reassess whether or not a market that has seen more than its fair share of troubles already year to date can continue higher.
Should it continue higher, which is in my view the likely scenario, we had a dauntingly large gulf to cross to approach the all time highs. The big round 2000 level, as well as a yet-to-be firmly established downtrend (gasp!) resistance line in the 2040 region both present significant resistance levels to any market resurgence.
Should we continue lower, we may see this rally fade extremely quickly, so keep any trailing stops tight. This will continue to be a challenging market in months to come.