Monday, March 26, 2012

Market update: S&P 500 at 3 year highs

It wasn't so long ago we were watching 1,260 as a key resistance level on the S&P 500 ($SPX).

Today we see the $SPX bumping up to 3 year highs.

Once the market closed above that same level and really held it after the start of the year, it stair-stepped higher with relatively tight pullbacks since. The last few months have been much more of a slow grind higher, as opposed to the choppy , volatile swings of last July through December 2011.

We are now approaching prior resistance levels near 1,440 from 2008. If the market can clear that, then pullback/consolidate and continue its move higher, we'll be approaching the prior peaks from the 2008 market top. 

Of course, a move towards 1,500 on the $SPX might be some time off given the extent of the move we've just seen.