I had a few technical problems to work through now that I am at my final destination. Sorry for the delay. Not much has changed in the outlook. Buyers have been in control for three sessions and overnight, but seem to be evenly matched with sellers at the moment.
4179 is the key level on the S&P 500. If buyers can push through that level, they can maintain control as they have the past few days.
Overnight, the NASDAQ 100 was leading the S&P 500, and the overnight action carried the index above the algo buy trigger. But as we often say, the action must be confirmed in the regular session. So far, traders are exploring the strength of the overnight low, we will see if they can bring it back up to test the top levels.
The key to this market continues to be the behavior of the 10-year treasury rate. To me, the chart looks like rates will move higher. Then the question becomes how much of a jump can the tech stocks can successfully handle. If we lose the tech sector, it will be challenging for the rally to hold together.
Stay tuned.
A.F. Thornton