$S&P;500; UPDATE

$S&P;500; has been testing patience for all market participants, doesn’t matter what your individual view is, the PRICE action since early APRIL has been very choppy and narrow. For an INDEX trader such sideways market is very annoying. In our review here in late MARCH we focused on level of 3,900 as a critical support, but we also did not expected it to break 4,100 anyways markets took out 4,100 on 31st,MARCH which opened up few upside possibilities. “After that break of 4,100 on 31st,MARCH it took markets to travel 100 points after 7 long weeks” so if that is considered a breakout? Then it’s a very pathetic one to trade. Last Thursday when S&P cash went above 4,195, trading community went crazy on calling for a new BULL MARKET, but based on our limited understanding on MARKET structure that is not a case, at best ongoing consolidation is an extended pause in a market which is primarily in a down trend. We don’t want to go in detail of under performance of small caps and out-performance for tech, everyone is aware on that. Even though this rally is not going to change the primary trend we should be aware on the best possible level on upside which possibly can terminate this extended upmove. That level would be 4,325. On downside if S&P cash breaks 4048 markets would resume their fresh leg lower. So 4048 would be a critical level to watch. TIME wise 25th and 26th,MAY would be key CYCLE dates.