In last week’s update, I expressed worry about the increase in bullish sentiment and felt a pullback in stocks was imminent. I put first support at 975 and better support at 950. 950 never came into play and now the S&P 500 is breaking out after testing 975:
We’ll see if this holds for the day, but a close here is a breakout on the chart and there is little in the way of overhead resistance:
My target all along has been the 1100 to 1200 range, but I didn’t expect to reach that until early next year. If we keep rising at the current rate, we’ll get there a lot sooner. The drop in bullishness in this week’s AAII poll makes this contrarian feels a little more comfortable. The fact that first support held is bullish.