In particular, the S&P 500 has faced significant resistance between 1360 and 1370, the level where it bounced in April and the same area as its 100-day moving average.
The main lesson from this market in the last year is that pullbacks tend to be steep as we try to rebound from selloffs, as we saw in late November. Based on that precedent, it is possible that the SPX could pull back to 1340 or even 1320 before buyers return in force. That was the consolidation area of early June and is roughly the location of the 50-day moving average.The big wild card the earnings season, whichs begin in earnest after today's close with Alcoa's quarterly results.
(Chart courtesy of tradeMONSTER)
