I gave three targets for the bulls yesterday and they were to break rising support on Vix just over 18, to break over the IHS neckline at RUT at 776, and to break over resistance in the 1357/8 area on SPX. Vix broke support and retested it, closing at the trendline, RUT broke over the IHS neckline to close at 886, and SPX broke over 1357/8 to peak at 1363 and close just under 1358. I have to say that was impressive and the short term pattern setup here is unambiguously bullish.
Many tops or near tops are being called this morning across the blogosphere, and equities are significantly overbought short term. Is it possible that we are seeing a top here? Of course it is, pattern setups are only ever probability setups, but as I said on Monday, of the five decent IHS setups like this one since the start of 2009, including a 17% fall in 2010 and a 21.5% (technical bear market) fall in 2011, all five made target.
