The S&P 500 is trading near its record high and is about to breakout from a short/bullish inverse head and shoulders bottom pattern. Keep in mind that from Feb’s low to Feb’s high, the $SPX has rallied a very impressive 7%, which is not an insignificant sum. In the old (non QE) days, a 10% annual advance was considered healthy. So 7% in less than a month is very strong and clearly illustrates how strong the bulls are right now. As previously mentioned, the bulls want to see the SPX close above 1850 and the bears don’t. Pending any major sell-off, the bulls are clearly in control at this juncture.  The week and month end tomorrow so we’ll see where we close.

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