The S&P has done it again. It has just made a mockery of any resistance levels and the rocket fueled rally continues. You figure that the market would take a rest after such an explosive rally over the past few days, and it doesn't. It just keeps powering higher. Now the next hurdle is the July highs at SPX 1990 set before we took a sharp dip in August. But that is only a few points away, so not much more to go. And then the psychological 2000 barrier again. Beyond that, it is new all time highs.
With the favorable seasonal factors and especially the strength of this V bounce, I would lean towards another break of the all time highs before the end of the year. With lower oil prices and the stronger dollar, the consumer should be pumped up for Christmas, and that should help fuel the end of year rally.
It is definitely frustrating time for bears, and not easy to make money unless you are a bull in this market, except for the very brief moments of selling that don't last more than a couple weeks anyway.
With the FOMC meeting upon us, I do believe we have finally reached a level that will pause this market for a few days. Plus, the market is way overbought short term, and will have trouble blasting through more resistance levels without a pause. But you can never say never to this bull market. It has made skeptics look like idiots over and over again.
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