Market Update - Wednesday 24 May

Resistance Is Not, In Fact, Futile.

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Stand By For The Bear Chorus

The S&P stalled yesterday in its attempts to conquer $420 on the SPY and equivalents in the SPX and ES options.   This is in our view is likely to trigger a temporary selloff, before the longer-term uptrend begins.  But the repeated failure of the S&P to defeat this level through 2022-3 means that we can expect a chorus of triumphant bearish commentators, opining that this proves that the rally from the October 2022 lows was just one big ole fakeout.  We cannot, of course, say that the bears are wrong until such time as they are proven wrong, but we think it risky to assume that at this stage they are right.  

Let's get to our charts.