The SP500 closed above its 200 SMA, and across the board the sense that this move up is due to the high frequency folks, end of quarter window dressing and/or any other reason people can think of. (Cramer does a good job summing up these points. However, I do not agree with him or the others.)
The markets are still in a sea-of-resistance. But what looks to be happening right now is the market acting ahead of the FinReg bill, and this is allowing the markets to move up. I linked a video yesterday where FinReg will not be as bad as the market is projecting. The outcome will simply boil down to be forced capital requirements to the trading arm of a bank. This is common sense regulation, and I truly believe its market friendly. This appears to be indicated in the weekly XLF chart, bouncing off of its support line and potentially regaining its 50 SMA support.
This set up should be good for bank stocks (especially GS), and if the market wants to follow them, the market will follow. BUT the market resistance is very real on the daily and weekly charts.
Whatever the markets decide to do, there are plenty of 'potential-resistance' points, via the technicals, the market can use to begin its consolidation.
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