The S&P 500 closed above 4,600 resistance on Friday for the first time in over a year and a half.
Bears fighting “too high, too fast” keep giving away money, but this doesn’t surprise readers. As I wrote on Thursday:
Something that refuses to go down will eventually go up. At this point, bears are losing the argument, and it will likely get worse for them if they continue fighting this market. If the November rebound was going to fail, it would have happened by now.
The index is not going anywhere fast, but more up than down means there is only one way to trade this. Lift stops above recent lows, and see where this takes us.
We finally broke resistance, and these things usually go a bit before stopping. Keep expectations in check, but stick with what is working.