The S&P 500, SPX, has regained the 1150 benchmark price on the relief rally & short squeeze resulting from the nearly $1 trillion EU, ECB, IMF rescue of Greece, weaker EU countries, EU financial system, and the Euro currency.
The 1150 benchmark price was previous key support, which was easily broken through on Flash Crash Thursday, May 6. This price was also resistance in mid March and even earlier in mid January. If the SPX can hold this regaining of 1150, this would be bullish.
Below is the SPX daily chart from the March 9, 2009 market bottom up through late morning Monday, May 10. The yellow horizontal line is the benchmark 1150 price. The intermediate term and long term siignals remain bullish for the SPX.
A bothersome sign is that the EUR/USD has not regained and held euro 1.30. This price was pinned to the upside overnight, but the Euor has fallen back below. I question whether a USA equities is sustainable, and specifically that the SPX can continue upwards above 1150 and retake 1200, unless 1.30 is first regained by the Euro and an upside breakout results. An upside breakout would also indicate confidence in the Euro, and therefore in the massive European fiscal, financial, and monetary intervention.