It’s been obvious for a while that the SPX 2007 intraday high at 1576 wasn’t likely to hold long, but I was expecting a bigger retracement before it broke. That was not to be and SPX broke and closed over resistance there with confidence yesterday. I’ve been looking at the daily bollinger bands pinching together on SPX for a couple of weeks now and noting that these tend to resolve into big moves. That big move should now be up so I’m expecting to see SPX over 1600 in the near future. SPX doesn’t tend to wander far from the upper bollinger band however, and that tends only to rise at five or six points per day in a strong move up. That closed at 1578 yesterday and the likely closing range would be at 1582-4 today, so with the close yesterday at 1587 I’m expecting to see some consolidation today:
