We keep waiting, and, I guess, hoping for a major breakout over S&P 500 2119/2120. We tagged 2120 yesterday. A one point breakout which of course is not a real breakout. That level didn't hold as the day moved along. We tried again today and once again tagged the top, and once again, could not get through. Maybe it's because some of the short-term index charts are overbought or maybe it's because the bears are throwing everything at the key level or maybe it's because we just can't get it done because of froth and bad weekly and monthly charts. Who knows for sure.
Maybe we just blast out Monday morning, or after earnings, from Apple Inc. (NASDAQ:AAPL) Monday evening. Or again, maybe never. The market will drive you nuts watching this process unfold. So close so many times. It feels like it's a guarantee. Like here we are, let's go, but we simply have not been able to blast through 2119. Until we do you need to be sure not to over play. The market teases and makes you feel as if you'll get what you want only to take it away. Getting aggressively long here makes little sense, but some scratch is not a bad thing, just in case we do suddenly break out. The market did gap up again today, but the struggle became apparent early on in the day. So now, we watch and wait for what most hope is the breakout. If we do break out it will do in to all time froth and horrific monthly and weekly index charts. Why not! It won't be boring next week, that's for sure.
To add fuel to the fire for next week, we get to hear from Fed Yellen on Wednesday regarding the usual nonsense about rates, etc. I doubt she will say anything earth shattering. Same old usual nonsense. That said, it could still move the markets. If the Fed hints at no rate hikes being imminent then this market may rally simply because it can, and I'm not being sarcastic. This market seems to look for anything that can make it go higher. Any excuse at all gets new and old buyers in the game. If she lets out a surprise in the form of new hikes to come sooner than later then the market may take quite a hit lower. But she doesn't want to do that here, I don't think although the market I would think is high enough for her here to allow for a correction. That said, she loves higher as her real job title suggests, market manager. A quiet fed could be yet another silly catalyst for higher prices. If you're bullish you don't care how silly it gets but make no mistake about it, this is quite silly.
Everything is against the bulls here. Froth. Bad weekly and monthly charts. Oh, and did I mention froth and bad weekly and monthly charts. Sheesh!!! Every day I ask myself how is this market holding up? My answer is always the same. Disneyland! There can be no other answer that makes sense. Even the Fed excuse has to start going away one would think after all this time. Never fight froth. Never fight price, even more than that, I gather. If we break above 2119 with force you'll shake your heads even more. I know I will anyway. 2085 is short-term trendline support but big picture it's still about 2045 on the down side. I'd love to say next week will definitely bring resolution, but who knows. Maybe AAPL does the trick one way or the other. Maybe the fed. Maybe......! An interesting week it will definitely be if nothing else.