HOW NOW SPX

Futures are trading up this AM with the SPX up 6.5 and 4.5 points above fair value yielding an open near 1,507. Naz futures up 13 on the heels of the GOOG upgrade at Bernstein (new target $850).

A new SPX chart today, kind of small but click on it and it looks a whole lot better.

Anyhow, markets hit my target of 1,490 (green line) and bounced nicely off that level. What next, I suspect the 50 day SMA at 1,513 will be an initial stopping point (see Friday's top), but if we get through, the 50% retracement maybe the next stop ( 1576-1490(2)) or the 1,535 area (blue line).

If the market turns lower, next stop could be 1,480 area which is the 200 day SMA (white line) which coincides nicely with the blast off point from September 18 (first rate cut).

We also continue to see bullish divergences on the MACD Histogram, defined as prices making lower lows but MACD making higher lows.