A decisive move above 1950 would put in a double bottom off the 1812-1810 lows and favor a continued rally. The first resistance is 1990-2025 with the falling 100 and 200-day MAs near 2000 and 2029, respectively. The double bottom would count up to 2085, which falls well shy of the 2135 high from last May. The double bottom from October projected to 2175, but the S&P 500 stalled well below that upside count, which was a bearish sign. The risk is that a double bottom breakout above 1950 could set up another lower high within the downtrend from last May and suggest another rally to sell.
BONDS ARE NOT BUYING WHAT CENTRAL BANKS ARE SELLING
If animal spirits are alive, and the underlying fundamentals improving, then how come bond yields are struggling to make even a dead-cat bounce? Equities are clearly chasing the latest news without caution. Bonds on the other hand are ignoring today's emotions and asking what has fundamentally changed. And the answer they've settled on is "nothing.