The SP500 closed above the 1972.56 resistance level at 1987.66, a gain of 47.15 or 2.43%. With the index closed above the previous resistance level, the new potential resistance level is the 3/11/15 close at 2040.24, and the October 12, 2014 close and the low remain to be the potential support levels.
SPX
(click on the chart to enlarge)
The SP500 ETF, SPY closed at 199.27 with a gain of 4.81 or 2.47%. The revised potential resistance is 204.40 and the potential support remains to be the October low at 181.92.
SPY
The Nasdaq 100 also closed above the 4278.14 resistance and above the 3/11/15 close. It ended the session at 4324.82 with a gain of 105.22 or 2.49%. The new potential resistance is 4349.93, and the October 16, 2014 close remains to be the potential support.
NDX
The Russell 200 closed near the 1154.71 resistance level. It closed at 1153.61 with a gain of 21.42 or 1.89%. The potential resistance remains to be 1154.71 and the potential support continues to be the October close at 1049.30.
RUT
The market demonstrated tremendous amount of upside strength in the last two days. The breadth has improved remarkably from the extreme level, and the market has bounced back up almost as quickly as it has gone down. One should not expect the market to continue to go up without a pause. Tomorrow is OpEx Friday and the market could pullback as some of the recent long options positions being unwind. In the coming days, do not be surprised to see the market retraces toward the recent low. When it does, keep an eye on the breadth to get clues on market direction. Until the market has put in a higher high-higher low, one should remain cautious and continue to be patient.
