NEWS OF RESISTANCE

After a quick look at the SPX chart several things become apparent. One, unless something powers us higher, resistance is about 7 SP points higher at 1280 and if we get past there, then 1290 comes into play. Other stats confirming that ceiling include the 2 day RSI on the SPX already at 75 and the VIX/VXO tandem both closing lower and now 5% below their respective 10 day SMA’s. Bottom line is the rally may last through the end of the week, but don’t expect much as the shorts will be happy to put out stock above 1280.