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The S&P 500 Index had a strong showing over the last five sessions considering how elevated this market really is. When you look at the weekly candles from the past month or so, you do see one running theme: refusal to go down. The hammers that have printed recently suggest that we are trying to break above the highs at the 1450 level, and as such we think that the S&P 500 should continue higher.
Any pullbacks at this point in time will more than likely result in a buying opportunity; we certainly see big support at the 1350 level as well as the 1300 level. With this in mind, we think the stock markets in New York in general are going to be positive over the near term. However, a lot of this is going to be predicated on the idea of the Federal Reserve easing its monetary policy in September. If that does not happen - stocks in the United States as well as around the world will probably fall rapidly.
On a daily close above the 1420 level, we are more than willing to go along of this market as we think the next logical area for resistance to come and won't be seen until 1500. As for selling, we probably won't be able to do so until the Federal Reserve comes out with its September announcement.