update of last post: could be short term bullish

The last post looked for a short term pullback from 3 to 5%. A week has past and thus far any intraday pullbacks has be met with buying soon after. The Nasdaq and NDX 100 are up +1%. The Dow, Russell 2000, and NYSE Composite are down less than 1%. While the SP500 is up 1/2% with its last year's highs ranging in the 1350 to 1370 level. Thus far the SP500 has held up well at the 1350+ level this past week. Despite some hints of recent internal weakness of individual stocks compared against the major indexes, which means if any selling can't bring the stock market down now then it'll delay it for later, the current consolidation could evolve into another rally higher for the short term. The Nasdaq and NDX 100 are the current leaders but will see whether the stock market will be able to hold the gains if and when the SP500 reaches the 1370 level.

Note: Thus far the posts from August to November of last year have worked out very good as the calls for a long term bottom and rally has been rewarding to the upside. You can go back and review the calls for a bull market while most were fearful for more downside in the coming months.

bullish momentum encounters resistance

The stock market had a nice rally since the last post with over +10% move for the major indexes. The Nasdaq has exceeded last year's high and the Dow is just at last year's high. So this market action could hint for more bullish move higher later in the year. For the short term, and possibly medium term, there could be some caution for the stock market as the SP500 is still a few percentage points below it's 2011 highs. If this were to be the case of either a pause or a bigger correction then there should be buyers below the SP500 1300 level (with 1250 being strong support.) On the other hand, if bullish momentum continues to overpower any brief weakness than there could be just a slow move higher.