This week, the S&P recovered the losses from the Goldman Sachs news, and tried twice to break resistance before reaching new market highs. The S&P was also in consolidation the past week a half, without breaking key trendlines, so the break to new highs was expected. In order for us to confirm this move, we need to have Monday to close at new highs, and the RSI oscillator is showing it can do so, as it is not in over bought territory. The Goldman Sachs news allowed a much-needed little breather. It also allowed the RSI to get out of over bought territory.
I am getting the feeling this market is getting tired, and this rally will not last much longer. From watching the action intraday, even though buyers have been coming in mid-morning to push the market higher most days, I am not seeing much conviction, with the exception of the last hour today. It is normal for markets to consolidate before continuing its primary trend, but the RSI is at 69.03, .07 away from over bought territory. Fibonacci retracement is showing 1235.04 is at the 61.8 from the October 2007 market highs to the March 2009 market lows. The S&P is at 1212.75, 23.71 points away.