S&P About To Hit Some Resistance

The US markets have had a nice little rally, but should we be surprised? I think not. We were due for some kind of bounce after the fresh lows that were reached in February. So the question on everyone's mind is whether this rally is just a bear rally or if it's a legitimate rally and likely the beginning of a turnaround. In my most humble opinion, it is way too early to tell.

The S&P is about to hit some major resistance just over the 800 mark. There are a couple of resistance points and trend lines that line up with the 50 day moving average, which should make for some interesting trading activity. Here's a chart to show you what I mean:
We'll need to see the S&P climb and stay above that area of resistance in order to indicate that we might be seeing a true reversal. Notice that in the past 6 months, when the S&P has traded above its 50 day moving average, it has only stayed above it for 3-7 days and then fallen back below. If it breaks the average again, wait for it to prove itself by staying above the average for a significant amount of time and also be ready to short if it falls back below.

I'm sure you've already seen this but just in case, there is one other piece of information that's out today...Russia is promoting the idea for a new world currency. They've been criticizing the dollar as the dominant currency...LOL...I guess they expect the world to listen to them because their currency has been so stable. In case you don't follow the Ruble, here's what I'm talking about.

Good luck out there.

TLT