On Tuesday, it seemed as if the PPT (Presidential Working Group on Financial Markets: http://en.wikipedia.org/wiki/Working_Group_on_Financial_Markets) was recalled from the Hamptons to buy some SP Futures (by the VEEP), when we dropped below the 1375 levels on the June basis. And, buying they did, ahead of the month end window dressing deadline. By late this afternoon, SP 500 Futures closed the month at 1402.50 at the critical zero(0) sigma level.
Both our Market Pulse Indicator (pointing up), the 5-day vs 10-day TRIN (pointing down) and Vol Indices (easing) point to at least a 1 to 3 days more move upward in this leg. But a failure by SPX (the Cash Index) at 200 day MA (1425.2 area) will be ominous for this fragile market.
So Stay Defensive.........in the mean time, we like select oil services and technology names here.
This and more will be discussed interactively in our webinar on Saturday, May 31st at 11:00 CDT. Click here to get free access: https://www1.gotomeeting.com/register/222922774