Thoughts for Sunday, August 17...

Last week we saw the S&P 500 rally up to challenge resistance at the 1305-1315 level before pulling back. The manner in which this rally reached this resistance suggests to me that further upside remains ahead for this index. One of the traits of this rally that I find interesting is the trend channel that formed with our recent upward movement. We can use the way prices move within this channel to gain greater understanding of the future movement for the S&P 500.

Thoughts for Monday, August 11...

As the S&P 500 has gradually moved higher since July 15, I have been feeling some concerns that we might actually see one last thrust down before the longer-term downtrend may be considered complete. I considered a few different techniques and perspectives before settling on the 1305-1315 area as my primary target to the upside.

The S&P 500 closed today at 1305.32, but I do not see any of the technical factors that might signal to me an end to the recent uptrend. It is entirely possible that the 1305-1315 area will prove to be a significant point of resistance, we will have to wait and see how things unfold. Nevertheless, the way that we rallied into this area of potential resistance suggests that the market will continue its uptrend and head even higher.