By Lawrence G. McMillan

The main thing to keep in mind is that $SPX has not broken down below support at 2800. It was tested -- more or less -- once again yesterday and has held so far. A close below 2800 would be very negative from the viewpoint of the $SPX chart.

Overheard, the major resistance on the $SPX chart is the double top at the all-time highs. More than one bear market has started from a similar pattern.

By Lawrence G. McMillan

$SPX bounced off of strong support at 2800 on Tuesday, and then fell back from resistance at 2890-2900 on Thursday, so for now $SPX is in trading range between 2800 and 2900 (roughly). I don't expect that range to last long, and a breakout either way is probably going to gather momentum quickly.

By Lawrence G. McMillan

Supposedly because of the China trade talks, but probably as much because the market was overbought and tired. $SPX headed lower this week. Several support levels have since been violated, but not all of them. This could still turn out to be a minor correction if support at 2800 can hold. However, caution is certainly warranted at this time, as the burden of proof is now on the bulls. The most negative aspect is that there is a double top in place now.

By Lawrence G. McMillan

The Fed announced that they weren't planning on cutting rates at this time. That was a "shock" to the media, but probably not so much to traders. In any case, $SPX sold off after that, causing some sell signals to be generated.

By Lawrence G. McMillan

$SPX made a new all-time closing high this week. The $SPX chart is strong and bullish, although the internals as represented by some of the other indicators are not nearly as strong.

There is support at 2890 and 2870, with major support at 2800. It seems to me that a break of 2870 support would be a problem.

By Lawrence G. McMillan

The $SPX chart itself is fine. It is rising, with all trend lines moving higher, including the "modified Bollinger Bands." There should be support near 2850, and perhaps even near 2870. Our target all along has been the all-time highs at 2940 and it still is. Unless this market regains some momentum, though, it is going to meet stiff resistance there.

By Lawrence G. McMillan

Overall, the $SPX chart is bullish. The trend lines and Bands are all moving higher (even the 200-day Moving Average is edging higher), and the only resistance area of significance is that at the all- time highs -- which should be the next stop.

By Lawrence G. McMillan

On Monday of this week (April 1st), $SPX resoundingly broke out to the upside, clearing the 2860 resistance level. That breakout also improved both the put-call ratios and the breadth oscillators, which acts as further confirmation of the bullishness that is being exhibited right now.

By Lawrence G. McMillan

As it stands now, $SPX is in a trading range between those extremes of the past week: 2785 to 2860. Indicators have become mixed during this pullback, so probably the best indicator will be price action itself. That is, follow a breakout above 2860 or a breakdown below 2785 as the impetus for the next directional move.

By Lawrence G. McMillan

Finally, $SPX has broken out over the heavy resistance at 2820. The breakout wasn't as resounding as expected, and we are in the process of retesting the breakout zone (2800 is the low end of the zone). A close back below that level would be very negative at this time.