The near-term outlook for the S&P 500 Index remains bullish, but perhaps for only a few more days.
Given Monday’s push higher to test (yet again) the area from mid-February, the near-term structure remains positive and appears ready for another few days of underlying strength to complete this pattern off the early March lows.
That said, defensive trading has started to creep into the equation while near-term momentum remains elevated. This is a time to watch carefully, as the Mass Pressure index should lead lower into end of March before a bounce into April.
The area near 3913 on the S&P 500 Index is important and then 3900 which cannot be breached without shifting this pattern to something more negative.
For now, we’ll stay long and play a move up to 3970-4000 area and just keep raising stops until evidence of exhaustion arises. Note, IWM and TRAN will join the SPY and QQQ in showing Demark “Sells” in the very near future, so this is something to watch carefully.
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Author has positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
