In 1858 Columbus sailed the Oceans… Wait?

It was 1492 Columbus sailed the Oceans Blue…

It’s 1858, where the S&P500 has set up a pivot point.  Sure, analysts will say it’s 1850.  But why be vague when we can get hyper-specific and really put our neck on the line?

Actually, it’s the old ‘rubber band’ analogy at work again.  The markets view 1850 as a significant consolidation area.  The 1858 area is the fringe of the 1850 range that keeps getting hammered in the media.  When Yellen fumbled on the 5 yard line during testimony yesterday, the markets coughed up their gains in a hurry.  Where did they retreat to?  1858.  Imagine…

The good news is that most of the news is out of the bag.  This means we can set up for the test of 1900 shortly.  Our foreign policy weakness in terms of how to respond to Russia is all but played out:  no military option; not enough economic impact to detour with sanctions; and a few international scoffs and laughs to add some insult.  All in a day’s work, right?  Meanwhile, the Fed has taken the specific 6.5% unemployment target off the table.  The market is now going to weigh how fast a rate hike is coming.

Spoiler alert:  Really bad news is bad, but sort of bad news is good again…  oh, and good news is good too.  The bulls would really like to have their cake and eat it too.  We’ll see if we get a quick leg to 1900 and some change.  At that point, we’ll see if all this underlying market rotation takes hold and we get a legit pull-back.  We’re probably due…

Support:  1858

Resistance:  1869

’nuff said.

Catch you on the forum call today…  and get your brackets done!  Clock’s tickin’ on that billion dollar gig.