It's 2:45PM here on the Eastern seaboard - what a beautiful day to watch our Sharky jump at the shorts (see chart below).
After wrestling above and below the Shark Line throughout the week (thick green line), I think we have ourselves the 3-day confirmation of the TREND that I was looking for here in the SP500. It's a bull Shark!
Technology (XLK), Consumer Discretionary (XLY), and Basic Materials (XLB) have been signaling a TREND line breakout throughout the week. The US market is now proving that it can hold higher lows no matter what the Financials (XLF) do. When those Financials get squeezed (like they are today), there isn't much left but a Pain Trade.
On an immediate term basis, my next line of SP500 resistance (red dotted line) is 861.
Have a great weekend,
Keith R. McCullough
Chief Executive Officer