Author: PivotBoss

The E-Mini S&P 500 continues to march higher after forming a recent low at 1553.25, and I’ve had my sights set on a retest of the 1600 level. I mentioned before that after a steady decline like the one we’ve had since last Wednesday’s, there is a tendency for the market to get a reaction rally. It’s what happens after the reaction rally that gives us a better sense of upcoming direction.

Typically speaking, when the market breaks a major technical support level, a retest of that level from underneath is usually sold, thereby sparking a bigger round of selling. If this case doesn’t play out, however, it will tell me the market remains extremely bullish. Only time will tell.