This morning we rabbit-bounced off the 50 day moving average (yellow line in chart below) at 1305 and exploded higher into the 1315 area. If this area does not hold as resistance then look 5 points higher at 1320, which was yesterday's high. If and when we close above the 1320 I see us heading to re-test the February highs at 1344 fairly swiftly and possibly head towards my target at 1380 in a few week's time.
Just so it's been said, SPX 1344 is 'only' 2.3% away from here and now and 1380 'only' 5%.
In the newsletter this morning I laid out the case for new longs if the 50 day holds and that we would add to long positions on a daily close above SPX 1320.
