After yesterday's low volume Sally rally the first real test for the market arrives as traders may have slept off the hangover this morning.
Two bigger picture charts on the S&P 500 worth noting this morning…for some perspective:
The daily chart shows major resistance coming into place near 1250-1260, which will also coincide with the 200 day simple moving average. This may be our year-end rally target…best case up to 1300. Of course all subject to revision as this volatility-driven market wiggles through the fall.
let's also not forget the bigger picture head & shoulders pattern in construction on the weekly chart: