It has been an incredible rally for the S&P500. With all the sceptisism and bad economic news, the fear has subsided and money is starting to flow back into the equity markets.
After a well supported rally to the upside a double bottom has formed on the S&P500 near the 880 level.
The following days will serve as an important test for the S&P500 as the 50 day and 200 day moving averages approach and price is squeezed between the two.
It does not make sense that the 200 day SMA be broken so easily and with light volume. I think that this break is a false upside breakout and we will come back to test the bottom of the double bottom in the 880 - 900 levels.
Only the future holds the answer.......
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