Once again it seems the S&P 500 is in all too familiar territory. Yesterday's rally closed above the 200-day average for the first time since early August, and as shown below the index was previously unable to sustain current levels. Some technicians look for confirmation in the form of back to back gains, a 50bps rally off today's economic news could be that confirmation but futures are still tentative this morning (-1.90 pts now).
Recent resistance is marked below by a grey dashed line. Peaks have been occurring at about 1130, so look for a breakout above there. If not then we're stuck in the same old trading range, although with the market's strings of 1%+ moves we can hardly call it boring. Either way look for the market to pick a direction and move from here, there is probably equal upside and downside risk of about 5%.