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Market technicals: I project a pullback to 760 on the S&P 500

On May 5th, The S&P 500 gapped up at the open and peaked at 930, just a hair below its Jan. 5 closing high of 935 and intraday high of 944. It has yet to pierce key resistance at its 200-day moving average line. The Nasdaq 100 has reached that line, although it's struggling to hold there.

However, market internals such as the amount of call vs. put buying by equity option traders have reached levels that have coincided with pullbacks in the past. Meanwhile, index option traders, who are typically the institutional "smart money" traders, have been buying more puts, which indicates they're anticipating a pullback.