Our market leadership model has stayed in the green and our momentum model is one decent up day away from turning bullish. The combination of both indicators producing buy signals usually means the indexes are going higher. If we finish up today, we recommend opening up positions in QQQ or for twice the bang of the NASDAQ 100 with ProShares Ultra QQQ (QLD).

S&P 500 Technical Analysis:

That being said, there are a few things in the S&P chart that concern us. As you will see in the chart below, we have rising price with falling volume. This is called a divergence, usually meaning the trend is not that strong. Secondly, the angle of ascent is crashing into resistance levels at 1275, one of the two has to give. If we can close above 1275, that should be taken as a 3rd buy signal, or confirmation of our indicator’s buy signals. The next stop would be around 1325.

For another take on the market technicals, see what our friends at IncomeTrader have to say.