On Monday we wrote that the S&P would hit resistance around 1275, it turned at 1282.19. We had the Dow pegged for a test at 10,750, its rally was temporarily suspended at 10,632.80. We predicted the NYSE would run into headwinds at 8575, the u-turn started at 8580.57. Finally, we saw 2350 as the point he NASDAQ would wobble, again we were close as the NASDAQ momentarily topped at 2325.88.
From here we are getting mixed signals as our market leadership and interest rate models are still in the green. But our momentum model is in the red and losing steam. In all likelihood, until we break through the resistance levels we mentioned above, we will trade in a range. In the end, earnings will dictate where the market finally ends up.
