By Lawrence G. McMillan
In this morning’s comment, I mentioned that the previous two times $SPX failed to break through the area of resistance in the 1260-1270 area, it turned down sharply. That’s what the bears are trying to duplicate today. I’m not sure they’ll be able to do it during this period of seasonal strength, but they are giving it a good go nonetheless.
Breadth is very negative and, if it stays this negative through the close, it will likely turn the breadth oscillators negative. We had mentioned last week that breadth needed to get overbought and stay that way if the market were going to break out strongly to the upside. But breadth never did, and so the buy signals are in jeopardy...
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