I’d like to review once again a daily chart showing the support parameter to the ‘top-test’ scenario. The reason we should be aware of support is because complacency has already returned to the markets and also because if the rest of the plan is anywhere near on target, the next major move would be down, not up even if SPX does test the January high first.
As for the shorter-term rally, the hold of the 200 day average was the start. Then the break above the 50 day average and finally, the green dashed trend line put the ‘M’ top-test scenario on the front burner ( “boiling frogs” and all). The area where the lateral support, the SMA 50 and the trend line meet is key support to keeping a top-test scenario in play (2673 +/-).