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To start the week, the S&P 500 was testing the bottom-side of a trend-line running back to the Feb lows from last year; that line in a hurry become right here to down there. The recent advance after a painful chop through much of December and January is looking a lot like a blow-off top in progress. Were not quite in a parabolic state, but it wouldnt take much more of a rally to put it there. With that said, its hard to say when we will see a meaningful, trade-able top, but its possibly on its way to a theatre near you soon. The time-frame of a blow-off isnt isolated to one; there are short-term exhaustions, then macro. For now, we are mostly concerning ourselves with the short-term. <\/p>\n
Being a Tommy Top Picker isnt fun and often times expensive, so well wait for momentum to turn on the longs before digging in from the short-side. Buying at this juncture holds poor risk\/reward, unless you are buying intra-day dips which have been fruitful with their very shallow occurrences. <\/p>\n
Looking upward, where could the market stall? Perhaps the under-side of the November trend-line around the 2060ish mark and climbing. But, again, these market melt-ups can be vicious, and until we see good price action indicating this move has run its full course we have no interest in being a hero here. On any decline from here we will look to the Feb 16 trend-line as the first area of potential support, currently around 2328 and climbing. <\/p>\n
S&P 500: Daily <\/p>\n
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---Written by Paul Robinson, Market Analyst <\/p>\n
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S&P 500: 'Blow-off' Phase in Progress - DailyFX - DailyFX<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Whats inside: Looking for trading ideas? Continue reading