US Stock Market Rebound – Closing in on Resistance

by Pater Tenebrarum
Acting Man

The Big Rotation

The recent rebound in the S&P 500 index is approaching a first area of resistance now. If it continues to roughly follow the 1962 analog which we have previously discussed (here is the chart), it should briefly back off, and then move slightly higher before rolling over again (we picked the analog because it featured a weak January open, and was preceded by a distribution phase in 1961 that looked very similar to the 2015 trading range; there is no other reason than pattern similarity, which has to be taken with a grain of salt).

[…] We have actually been remiss in that we have failed to mention that Frank Roellinger informed us that the Modified Ned Davis Model has covered its Russell 2000 short position on Friday Feb. 26, and has switched back to a 100% long stance – however, readers hopefully caught our remarks published on the very same day:

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