S&P

Here is an updated hourly chart showing pit trading in the March S&P futures.

Yesterday afternoon I said that a reaction of 12 points or so was likely in the S&P from the 1289 level. After that post was written the market rallied further to 1292.75 on heavy volume. This was probably a small buying climax but it is also a sign of strength so I think the upcoming reaction will probably be only 10 points or so and carry down to 1283.

If this proves too optimistic then I'd say that 1276 is a less probable but still viable reaction target.

In either event the swing up to 1320 and eventually to 1350 is still in good shape and I think the next two months will be bullish ones.