The June S&P 500 index closed sharply higher on Monday and above May's high crossing at 929 thereby renewing the rally off March's low.
The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term.
If June extends today's rally, the 38% retracement level of the 2008-2009-decline crossing at 1040.33 is the next upside target. Closes below the reaction low crossing at 875.40 would confirm that a top has been posted.
First resistance is today's high crossing at 947.00. Second resistance is the 38% retracement level crossing at 1040.33. First support is the 20-day moving average crossing at 904.17. Second support is the reaction low crossing at 875.40.