Near Term Trend: Positive
Friday’s Close: 2091.58 (+ 0.10)
UPDATE: We have been focused on the bullish momentum during the past few months which witnessed a blistering rally of 297 points (including the move to 2110.00 this past week) in the S&P.
In our closing comment before this past week, we stated, “No clear sell signal exists, but the overextension makes sustaining the rally vulnerable”.
I’m not sure the Index backing off (30 points) from the high of 2110.00 on Wednesday to a low of 2080.00 on Friday constitutes a measure of vulnerability, but a move under 2065.00 would most likely define an area whereby concerted profit taking (selling) could snowball and gain momentum to the downside.