...today's price action pushed the index right passed the psych resistance cluster:
-the 18 May 2012 Low *1291.98
-the 21 May 2012 Low *1295.73
-the 23 May 2012 Low *1296.53
taking on the end of May *1319.74 with a Close *1315.13. As a result, the tone in the markets turned positive albeit based on hope
- nevertheless, price action of the last three trading days confirmed the 200-dsma current *1286.64 up-trending as the all-out bull/bear battle line and another violation of the 200-dsma and the upside market goes history.
Early signs of weakness ahead will be a dive back into the recent resistance cluster on a Close basis, but in the meantime, the 24 May 2012 startegy, "unless the SPX 500 market pushes below the 200-dsma confirmed, long accumulation/hold with appropriate stops in the 200-dsma vicinity" remains valid. To lock in profits so far, the stops have moved up to the 21 May 2012 *1295.73
...short-term markets are now overbought and for the positive tone to continue, down moves within a consolidation need to be limited to the 21 May 2012 *1295.73