Back on September 14th we suggested that the third time could be a charm for the S&P 500, and a few days thereafter it broke through previous resistance at about 1125. Now comfortably above the 200-day average and having held the 1125 level, the market is pausing at 1150. 1150 is a short term high from January and also the 176% projection level from the March-09 - June-09 Fibonacci Projection. Technicians are watching it closely and based on the chart below their actions are having an impact. Look for a close above 1150 to confirm the recent uptrend.
On a different, but still technical, note: the 50-day average is now rapidly approaching the 200-day. Shown below, it is going to take a significant sell-off to avoid a golden cross. (We wonder if or when this point is going to come up in the media.) The bottom line is that we're in a new month and a new quarter, momentum is to the upside and look for a big move either today or Monday which will set the trend for the rest of the month. (Click to enlarge)