Lehman resistance zoneWhat is happening here is that the S&P just slowly grinding it's way along and testing the Lehman 2008 crash zone. The zone is 1255-1270. Back in 2008, the mkt tested this zone a few times as support, and when it broke through, then it crashed. The mkt fell fast in that crash and has taken nearly 2 years to finally claw it's way back to test that zone. Not exactly bullish...
The resistance in this zone is tremendous and that is why the mkt is just slowly creeping along day after day. The mkt can just drift along sideways testing this zone for a bit longer, but it won't last long at all. There is no doubt in my mind that the mkt will be rejected at this resistance, and the reaction will be extreme.
Patience is the key here.
SC