As the market struggles with whether we are heading to 4,600 on the S&P (as the good people at Goldman Sachs assert) or instead lose of the recent mega-rally, I would suggest keeping a close eye on KBE, the bank sector ETF. We are at an important resistance level, just beneath a substantial cluster of overhead supply.
The strength since March has been persistent, however, banging out a series of higher lows, and turning the moving averages to the favor of the bulls.
The bigger picture, I would suggest, looks more fraught with danger. This, to my eyes, is not the kind of setup of which new bull markets are made.