It's shaping up for another weak morning for stocks as futures are in the red. Yesterday the market rolled over during first hour of trade before reversing all those losses and then some into the close.
One characteristic of this market, that has me thinking more upside awaits was revealed during yesterdays session and numerous other sessions from the December 24th lows. Buy the dip is back. That morning dip is getting bought.
From the October highs to the December lows market action had a decidedly different tone. It was not uncommon to see a rather strong start to the day followed by nasty selling that erased all the early gains and more.
Looking at the SPX 2800 $SPY $280 level as current resistance, and also as a previous tipping point for the market, running into it this time around has not had the same affect as its prior visits. Notice how the three other tests resulted in rather swift reversals to the downside?
This time around prices are hanging right around and looking more like a consolidation phase before breaking even higher, rather than a move back down to support. It does look and feel different than the other three attempts to break $280 $SPX 2800, which is why I think the break higher is coming. Perhaps today, tomorrow, or next week... but its coming.