S&P 500 up 15 points to 2021
There were good signs in the US stock market as the S&P 500 rallied 0.8% but it only took a small bite out of the sharp two-day decline late last week.
Technically, the climb hardly qualifies as a retracement. It will need to rise to 2040 just to hit the 38.2% Fibonacci from the Thurs/Fri decline. Given the strong close, I like the upside in the day ahead. It's one of the best seasonal periods of the year.
In the bigger picture, the 21-day moving average is about to fall below the 200-dma but the 55-dma is trending towards a rise above the 200-dma.
On the downside, the 1994/2000 zone is critical.
A final level to watch is 2058. That was the closing level on Dec 31, 2014 and is the difference between a small gain and a small loss on the year.
