The S&P continues to find support on the 8 day moving average(grey line). With Options Expiration this Friday, I'm looking for resistance @1210(yearly R1 pivot on the ES June contract) on the S&P and 12100 on the Dow Jones(12065 on the futures), and support coming in at 11800 and 1165. Beware, we are in the danger zone and we will see a reversal within 60-90 days or sooner, per last weeks chart. The market has never stayed in the danger zone(80% + stocks above their 50 dma for more than a few months. I am not looking for new long term positions up here. The best risk/reward spot to buy, is when the market does pull back to the yellow(20dma) or blue(50dma) line's an the chart above.
