S&P 500 Trend Update (Week 8)

The S&P 500 has been heading higher in a tight uptrend channel since the end of December 2011, and swiftly broke an interim high made on May 3, 2011. Bulls could be challenged with overhead supply at these levels going forward, but a minor range above 133.50 will not have much impact to the overall  trend. Bears would have to erase a lot of bull’s work which will not happen without any a negative story behind. So far, we do not see any dynamic strength coming from bearish participants, however, it pays to be aware of the aforementioned areas.