It’s do or die time for all the major indexes. On July 21st, we wrote, “the S&P could find some initial resistance around 1275, the Dow at 11750, the NYSE at 8575 and the NASDAQ runs into headwinds around 2350.” This is the 3rd trip for the indexes to their resistance levels.

On Monday we said of the S&P chart, “the angle of ascent is crashing into resistance levels at 1275, one of the two has to give.” Yesterday the S&P closed at 1284.88, the Dow at 11,615.77, NASDAQ 2349.83 and the NYSE at 8471.85. While the Dow and NYSE have some room to go, we are happy to see the NASDAQ and S&P lead the way.

The Correct Call Market Indicators

With yesterday’s huge rally, our momentum indicator flipped the green light on. It joins our market leadership and interest rate models as all 3 are now registering a buy signal. If all the indexes can close above their resistance levels, it should be seen as powerful confirmation of higher stock prices to come.